What happened
Share of the investment bank Jefferies Financial Group (JEF 2.48%) had fallen roughly 10% as of 1:55 p.m. ET today after the company reported earnings results for the fourth quarter and full year of 2021.
So what
For the three months ending Nov. 30, 2021, Jefferies reported $1.20 diluted earnings per share (EPS) on total revenue of roughly $1.8 billion, missing on both EPS and revenue estimates. Analysts on average had projected Jefferies to report $1.34 EPS on total revenue of $1.9 billion. On an adjusted basis after removing some expenses related to the repayment of debt in the quarter, Jefferies would have beat EPS estimates.
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For the full year ending Nov. 30, Jefferies reported $6.13 EPS on total revenue of $8.2 billion. Both numbers missed on full-year estimates as well.
The company's board of directors increased the quarterly dividend from $0.25 to $0.30, a 140% increase from just two years ago. Management also said the bank will potentially be able to buy back stock in the future.
Now what
Revenue and earnings can be a bit tougher to predict for investment banks but overall Jefferies had a nice year, with revenue from investment banking and capital markets, asset management, and merchant banking all much higher than in 2020. For the year ending Nov. 30, the bank generated a 24.5% return on adjusted tangible equity. I am not overly concerned about the miss.
