Jefferies Financial Group Inc (NYSE:JEF) misses analysts estimates

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Jefferies Financial Group Inc (NYSE:JEF) stock rose 0.027% (As on Jan 13, 11:06:46 AM UTC-4, Source: Google Finance) after the company posted lower than expected results for the fourth quarter of FY 22. The adjusted net income attributable to common shareholders was of $369 million. Investment Banking net revenues of $1.18 billion were driven by all-time record quarterly Advisory net revenues and stronger results in Equity and Debt Underwriting as compared with the prior year quarter. Combined Capital Markets and Other net revenues of $438 million were 30% lower as compared to prior year quarter, primarily due to challenging market conditions for fixed income trading leading to lower volumes, as compared with the prior year quarter, which benefited from high levels of client activity due to more favorable market conditions.

Further, Asset Management net revenues reflects lower investment returns compared to the prior year quarter, partially offset by an increase in management, performance and similar fees and revenues. Merchant Banking results reflect the normalization of the results of Idaho Timber and a decline in the value of several of our investments in public companies.

JEF in the fourth quarter of FY 22 has reported the adjusted earnings per share of $1.20, missing the analysts’ estimates for the adjusted earnings per share of $1.34. The company had reported the adjusted revenue of $1.8 billion in the fourth quarter of FY 22, missing the analysts’ estimates for revenue of $1.9 billion.

Additionally, the company has declared a quarterly cash dividend equal to $0.30 per Jefferies common share, payable on February 25, 2022 to record holders of Jefferies common shares on February 14, 2022. The company has also increased the share buyback authorization by $88 million back to a total of $250 million. During the quarter, the company has repurchased 2.0 million shares for $88 million, or an average price of $42.91 per share.

On the other hand, the company has announced the appointment of Thomas W. Jones to its Board of Directors effective March 28, 2022. Jefferies also announced that, after almost nine years as a member of the Jefferies Board of Directors, including the last two as its Lead Director and the Chairperson of Jefferies’ Nominating and Corporate Governance Committee, as well as being a member of the Audit and ESG/DEI Committees, Frank Borges has announced that he will not be standing for re-election to the Board.

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