Jefferies Financial Group Inc (NYSE:JEF) stock rose 0.76% (As on March 26, 11:16:37 AM UTC-4, Source: Google Finance) after the company missed analysts’ estimates after its profit jumped 22% in a first quarter that was buoyed by investment banking, but marred by losses on loans to collapsed companies. The investment bank said it had $17 million in losses related to collapsed British lender Market Financial Solutions and bankrupt U.S. auto-parts supplier First Brands after adjusting for compensation and taxes, with exposure to First Brands now amounting to zero. More than $1 trillion worth of deals has been announced so far this year, 27% more than this time last year, according to data compiled by Dealogic. Jefferies’ investment banking net revenues in the quarter rose 45% to $1.02 billion from a year earlier, while total revenues climbed to $2.02 billion.
Moreover, the bank also took a non-cash after-tax write-down of $36 million related to goodwill, linked with the sale of its stake in Italian telecommunications firm Tessellis. The firm, which served as a lead underwriter on several sizable initial offerings in the first quarter, including those of York Space, opens new tab and Forgent, opens new tab. Meanwhile, Jefferies was in the spotlight on Tuesday after the Financial Times reported that Japan’s Sumitomo Mitsui Financial Group, opens new tab was planning a potential takeover of the investment bank. Other media reports rebuffed the news, saying Japan’s second-largest lender was not engaged in acquisition talks and the Wall Street investment bank was not interested in selling at this point.
JEF in the first quarter of FY 26 has reported the adjusted earnings per share of $0.85, missing the analysts’ estimates for the adjusted earnings per share of $0.96. Investment Banking net revenues were $1.02 billion, up 45% from the prior year quarter. Capital Markets net revenues were $779 million, up 12% from the prior year quarter. Equities net revenues increased 37% and Fixed Income net revenues were $220 million. Asset management fees and investment return revenues were $159 million, up 91% compared to the prior year quarter.
Additionally, the Jefferies Board of Directors declared a quarterly cash dividend equal to $0.40 per Jefferies common share, payable on May 29, 2026 to record holders of Jefferies common shares on May 18, 2026. The company repurchased 3.0 million shares of common stock for $174 million, or an average price of $58.18 per share. The company has increased the share buyback authorization back to a total of $250 million.