Jefferies Financial Group beats profit estimates on dealmaking surge

Jefferies Financial Group reported third-quarter earnings that exceeded analyst expectations, driven by a surge in dealmaking and equities trading. The New York-based investment bank reported an earnings per share of $1.08, surpassing the $1.00 consensus estimate. Total revenue for the quarter reached $2.22 billion.

Key growth drivers included a 17% increase in investment banking revenue to $1.33 billion, supported by a record quarter for advisory services, and a 69% surge in equity underwriting revenue. Capital markets revenue also rose 11% to $802 million due to strong equities trading performance.

Despite the earnings beat, Jefferies shares fell approximately 3% in extended trading. The company noted that asset management fees and investment return revenue declined to $34 million from $84 million in the previous year, reflecting weaker performance across certain fund strategies.