Movement Alert|Jefferies Financial Falls 5.54% in Regular Trading, Q2 Revenue and EPS Both Miss Expectations Triggering Continued Selling

Market Focus06-26 22:42

On June 26, Jefferies Financial fell 5.54% in regular trading, trading at $49.61/share, with turnover of $43.44 million. The decline reflects continued selling pressure following the company's Q2 fiscal earnings report released earlier this week, in which both revenue and earnings fell short of Wall Street expectations.

Specifically, Jefferies posted Q2 EPS of $1.02, missing the consensus estimate of $1.16, while quarterly revenue came in at $2.206 billion versus the expected $2.299 billion — a shortfall of approximately 4.1%. Although revenue grew 35% year-over-year and EPS surged from $0.40 in the prior-year period, this marks the second consecutive quarter of missing estimates, eroding market confidence. UBS cut its price target on Jefferies from $67 to $65 while maintaining a neutral rating, noting that fundamentals remain solid but the company failed to clear the raised expectations bar. The company also repurchased 4 million shares for $197 million and increased its buyback authorization to $250 million during the quarter.

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