Jefferies (JEF) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

For the quarter ended November 2023, Jefferies (JEF) reported revenue of $1.2 billion, down 16.8% over the same period last year. EPS came in at $0.30, compared to $0.57 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.18 billion, representing a surprise of +1.64%. The company delivered an EPS surprise of +15.38%, with the consensus EPS estimate being $0.26.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Jefferies performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Revenues by Source- Total Asset Management Net revenues: $140.65 million versus $51.36 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -64.4% change.
  • Net Revenues by Source- Total Asset Management Net revenues- Asset management fees and revenues: $18.70 million versus $17.35 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +39.1% change.
  • Net Revenues by Source- Total Asset Management Net revenues- Investment return: $62.89 million compared to the $29.25 million average estimate based on two analysts. The reported number represents a change of -59.8% year over year.
  • Net Revenues by Source- Total Asset Management Net revenues- Allocated net interest: -$14.57 million compared to the -$12.73 million average estimate based on two analysts. The reported number represents a change of +119.7% year over year.
  • Net Revenues by Source- Total Capital Markets: $481.25 million versus the two-analyst average estimate of $512.88 million. The reported number represents a year-over-year change of +0.7%.
  • Net Revenues by Source- Total Capital Markets- Equities: $271.48 million compared to the $278.14 million average estimate based on two analysts. The reported number represents a change of +8% year over year.
  • Net Revenues by Source- Total Investment Banking and Capital Markets Net revenues: $1.06 billion compared to the $1.21 billion average estimate based on two analysts. The reported number represents a change of +1.1% year over year.
  • Net Revenues by Source- Total Investment Banking- Total underwriting- Advisory: $312.31 million versus $360.42 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -18.1% change.
  • Net Revenues by Source- Total Investment Banking- Other investment banking: $2.84 million compared to the $42.23 million average estimate based on two analysts. The reported number represents a change of -82.1% year over year.
  • Net Revenues by Source- Total Investment Banking: $576.75 million versus the two-analyst average estimate of $697.26 million. The reported number represents a year-over-year change of +1.5%.
  • Net Revenues by Source- Total Investment Banking- Total underwriting- Debt underwriting: $129.44 million versus $138.66 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +109.7% change.
  • Net Revenues by Source- Total Investment Banking- Total underwriting- Equity underwriting: $132.16 million versus $155.96 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +20.8% change.
View all Key Company Metrics for Jefferies here>>>

Shares of Jefferies have returned +8.8% over the past month versus the Zacks S&P 500 composite's +2.9% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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