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Jefferies Profit Falls 40% in Q2 as Equity Underwriting Slumps

Management forecasts stronger deal flow in the second half of the year after a quarter overshadowed by equity market swings coupled with policy uncertainty

General view of Jefferies Financial Group offices in Manhattan, New York City, U.S., December 8, 2021. REUTERS/Eduardo Munoz/File Photo
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Overview

  • Net earnings attributable to common shareholders dropped to $88 million, or 40 cents per share, in the quarter ended May 31 compared with $145.7 million, or 64 cents, a year earlier.
  • Revenue from equity underwriting plunged 51% to $122.4 million as market volatility in the first two months weighed on deal volumes.
  • Advisory revenue climbed 61% to $457.9 million, driven by market share gains in merger and acquisition advisory.
  • Capital markets revenue edged down 0.4% to $704.2 million as stronger equities trading offset weaker fixed-income performance.
  • Jefferies shares have lost about 30% of their value year to date and executives expect a rebound in dealmaking later in 2025.