Aerospace Industry's Q2 Performance Fails to Soar

Jefferies (JEF) Q1 Earnings and Revenues Lag Estimates

Jefferies Financial Group Inc. (JEF) announced its first-quarter earnings and revenues, which fell short of analysts' estimates. The financial services company reported net income of $143.4 million, or $0.33 per share, compared to $143.6 million, or $0.33 per share, in the same period last year. The consensus estimate was for earnings of $0.42 per share.

Revenue for the quarter was $1.34 billion, a decrease of 5.4% from the prior-year period. The consensus estimate was for revenue of $1.44 billion.

Jefferies' investment banking revenue declined 14.6% year-over-year to $344.3 million, while its equities revenue fell 15.4% to $444.8 million. Fixed income revenue was down 7.5% to $444.8 million. The company's other revenue, which includes asset management and wealth management, decreased 2.4% to $211.1 million.

Jefferies CEO Richard Handler stated, "Our Q1 results were impacted by the ongoing market volatility and the decline in fixed income and equity trading volumes. However, our investment banking business was resilient, and we saw strong growth in our asset management and wealth management businesses."

Despite the disappointing quarter, Jefferies reiterated its full-year 2023 guidance, which includes net income of $1.65 billion to $1.75 billion and revenue of $6.2 billion to $6.5 billion. The consensus estimate is for earnings of $1.73 per share and revenue of $6.3 billion.

Jefferies' shares were down 2.5% in after-hours trading following the earnings release.