JEF

Jefferies rates all four money center banks Buy after Q2 beats on EPS, driven by strong NII growth, fee income, and capital markets. Goldman Sachs (GS) hit record H1 2026 markets results, while Bank of America (BAC) raised its FY26 operating leverage guidance to 300-400 bp. This lithium producer surpassed a $1B private valuation, joining some of America's most powerful startups. Now you can invest in EnergyX alongside global giants like General Motors, but only through July 16. (sponsor) As always, the quarterly earnings were kicked off by the major large-cap money center banks, and as expected they all delivered solid earnings reports. The team at Jefferies remains very positive on the four top companies that beat earnings expectations and, most importantly, provided reassuring forward guidance. Net interest income, or NII, across all banks was impressive, and with the debate over where interest rates will be as we move through the rest of 2026 remaining a wild card for all the financial giants, the second half of the year could prove interesting. The Jefferies team had this to say when discussing the results: We’re out with our thoughts following large-cap bank earnings. We highlight that results were largely positive, with all four banks beating Earnings Per Share and Pre-Provision Net Revenue expectations. Loan growth came in modestly above expectations, while deposit trends were generally stable. NII growth remained healthy, supported by strong balance sheet momentum, deposit growth, and fixed-rate asset repricing. Fee income remained constructive, benefiting from strength in payments, treasury services, securities services, wealth management, and transaction banking. Meanwhile, capital markets were a standout performer, driven by robust trading activity, improving investment banking fees, and healthy client engagement. Here are the four dividend-paying financial giants that Jefferies rates as Buy. July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX. Here's why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040. With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a...

Spotify Technology SA (NYSE:SPOT) is expected to report a steady second-quarter performance, with Jefferies maintaining a positive long-term view despite not anticipating a "narrative changing" earnings release. The investment bank reiterated its ‘Bu’y rating and $600 price target, implying upside from current levels of $485, ahead of the company's results, writing that it prefers to remain positioned for potential catalysts including a Warner Music Group remixing agreement and the launch of AI-powered remixing features. For the second quarter, Jefferies forecasts gross margin of 33.1%, in line with Spotify's guidance, while noting that a typical beat of more than 20 basis points to around 33.3% represents a reasonable upside scenario. The analysts also view the current third-quarter Wall Street gross margin estimate of 33% as achievable, despite expected regulatory charges. Jefferies expects constant-currency revenue growth of 15% year over year in both the second and third quarters, in line with consensus estimates. It also forecasts second-quarter net additions of 6 million premium subscribers and 17 million monthly active users, with potential upside to MAUs from Spotify's Wrapped 20th anniversary campaign. The analysts expect investor attention to center on management's comments about new products, particularly the timeline and adoption of an AI remixing offering. "We'll be listening for commentary on AI remixing adoption/timeline, but given investor skepticism on uptake, remixing is ultimately a 'show-me' that we think plays out positively in the coming months," Jefferies wrote. While the bank sees the potential for lower operating expenses, it wrote that cost reductions alone are unlikely to drive a sustained re-rating without additional revenue from new products. Looking further ahead, Jefferies expects 2027 to benefit from new product opportunities, additional pricing initiatives and more normalized cost growth, while reiterating that evidence of incremental revenue from AI remixing could renew investor interest in the stock.

JPMorgan’s JPM second-quarter 2026 adjusted earnings of $6.14 per share beat the Zacks Consensus Estimate of $5.59 by 9.8%. The bottom line was up 17.2% from $5.24 reported a year ago.Despite the robust quarterly performance, JPM shares fell more than 2% in premarket trading. The decline likely reflected investor concerns over management’s higher non-interest expense outlook for 2026.Reported net revenues of $57.35 billion rose 27.7% year over year and topped the consensus mark of $49.14 billion. Strong Markets and investment banking (IB) activity powered core growth, while net interest income (NII) got support from decent loan demand.The quarter included a $4.55 billion pretax gain related to Visa shares, which added $1.27 to earnings per share. JPM also recorded $1.03 billion of gains on certain equity investments, adding 29 cents per share. Including these significant items, net income jumped 41% year over year to $21.16 billion. Markets revenues advanced 35% to $12.08 billion on elevated client activity, strong trading performance and continued financing demand in Equities. Fixed Income Markets revenues rose 6% to $6.05 billion, while Equity Markets revenue surged 86% to $6.03 billion.IB revenues increased 45% to $3.90 billion. IB fees rose 30% to $3.28 billion on higher fees across products, led by equity underwriting. Payments revenues grew 12% to $5.30 billion, while Securities Services revenues gained 17% to $1.66 billion. Reported NII increased 9.9% to $25.51 billion. NII excluding Markets was $23.68 billion, up 4%, supported by higher deposit balances, greater revolving Card Services balances and wholesale loan growth. Lower rates partly offset those benefits.Average loans expanded 10% to $1.52 trillion, while average deposits grew 7% to $2.69 trillion. The net yield on interest-earning assets was 2.40%, down from 2.43% a year earlier, showing rate pressure despite balance sheet growth. Non-interest expenses rose 15% year over year to $27.32 billion. Higher compensation, brokerage and distribution fees, marketing, technology and occupancy costs drove the increase. Still, the reported overhead ratio improved to 48% from 53% in the prior-year quarter.The provision for credit losses was $2.52 billion, down 12%. Net charge-offs (NCOs) were $2.4 billion, down $44 million, and the company recorded a $149 million net reserve build, primarily in Wholesale....

Ecommerce and internet stocks could continue to gain as second quarter earnings season provides greater clarity on profit margins and growth trends, according to Jefferies analysts, who believe valuations across the sector remain attractive despite ongoing concerns about artificial intelligence disrupting online traffic. The analysts wrote that relative valuations are at multi-year lows and that easing worries over AI-driven disintermediation could continue to support companies with strong earnings potential and room to outperform consensus expectations. Jefferies also expects upcoming earnings reports to offer investors more visibility into full-year margins after several companies announced increased investment plans earlier this year. Among ecommerce names, Jefferies maintained a ‘Buy’ rating on Carvana Co. (NYSE:CVNA), though it said its web-scraping analysis suggests retail unit growth slowed to the mid-30% range in the second quarter, slightly below consensus estimates. The firm said that would end the company's streak of nine consecutive quarterly beats if confirmed. It added that Carvana would likely need to sustain unit growth above 30% and restore retail gross profit per unit to more typical seasonal levels for the stock to perform well in the second half of the year. Jefferies remained cautious on eBay Inc (NASDAQ:EBAY, XETRA:EBA), reiterating an ‘Underperform’ rating as it expects tougher year-over-year comparisons to weigh on gross merchandise volume growth during the second half after temporary tailwinds supported earlier results. For Etsy Inc (NASDAQ:ETSY, XETRA:3E2), which carries a ‘Hold’ rating, the analysts expect gross merchandise sales growth to accelerate in the second quarter and continue improving through the remainder of the year, supported by recovering web traffic trends. The firm also downgraded Pattern to ‘Hold’ after the stock's roughly 150% gain year to date. Jefferies said the company's valuation now appears to reflect its growth prospects and potential upside to consensus expectations. Beyond ecommerce, Jefferies said it is bullish heading into earnings on Airbnb Inc (NASDAQ:ABNB, XETRA:6Z1), Instacart (NASDAQ:CART) and Reddit Inc (NYSE:RDDT), while remaining cautious on Lyft Inc (NASDAQ:LYFT) and Tripadvisor Inc (NASDAQ:TRIP). Within delivery and mobility, the firm expects Uber Technologies Inc (NYSE:UBER, XETRA:UT8)'s mobil...

DA Davidson called WD-40’s Q3 report a “strong beat”; Jefferies called it “solid.” For Q3, the company reported net sales of $195.1 million and adjusted earnings per share of $2.33. For the full year, adjusted EPS was guided between $6.05 and $6.35. Shares of WD-40 (WDFC) surged on Friday after the company reported better-than-expected third-quarter (Q3) results, drawing praise from Wall Street firms DA Davidson and Jefferies. According to TheFly, both firms raised their price targets on the company, which makes lubricants and household cleaning products. See what 10M+ investors are talking about. Get the Stocktwits Daily Rip for what retail is watching right now, free to your inbox At the time of writing, WDFC stock is up more than 23% and on track for its highest level in nearly 20 months, if session gains hold. DA Davidson called the report a “strong beat,” noting WD-40’s top-line strength and upside to gross margins, which helped increase profits. However, the firm flagged that the impact of higher input costs will be felt with a lag into the fourth quarter, and pointed out that the full-year guidance raise, while coming in less than the beat, implies some giveback to the upside this quarter. DA Davidson has a new price target of $305, up from $270, implying more than 27% upside potential as of the stock’s last close on Thursday, and maintained its ‘Buy’ rating. Jefferies, on the other hand, kept its ‘Hold’ rating on WDFC but raised its price target to $245 from $229, implying upside potential of just over 2% based on the stock’s previous closing price. The firm also cheered the “solid” Q3 report but sounded a caution about high input costs expected down the line. “While sales are set to move higher, higher input costs should squeeze margins through the first half of FY27 despite the recently announced price hikes,” the firm reportedly said. WD-40’s consolidated net sales rose 24% year-on-year in Q3 to $195.1 million, which came ahead of the Koyfin consensus estimate of $177.6 million. Adjusted earnings per share (EPS) were $2.33, ahead of the $1.50 per share estimate. For the full year, adjusted EPS was guided between $6.05 and $6.35, with revenue expected to be $652 million to $667 million, excluding forex fluctuations. The consensus estimates are $6.01 in adjusted EPS and $668.88 million in revenue. On Stocktwits, retail sentiment toward WDFC stock tu...

Netflix Inc (NASDAQ:NFLX, XETRA:NFC) heads into its second quarter earnings report with Jefferies reiterating its ‘Buy’ rating and $110 price target, while writing that it sees limited scope for a sustained near-term re-rating despite maintaining a positive long-term outlook on the streaming company. The brokerage expects investors to remain focused on subscriber trends, engagement, operating margins and management's outlook, arguing that even stronger-than-expected results may not be enough to shift market sentiment given ongoing concerns around subscription growth, potential merger and acquisition activity and the perceived impact of artificial intelligence. Jefferies does not expect a meaningful upside surprise in second quarter or full-year revenue guidance, forecasting constant-currency revenue growth of 12% year-over-year for both the second and third quarters, broadly in line with Wall Street expectations. The firm also does not expect Netflix to raise its full-year revenue outlook this quarter, citing soft third-party subscription data. The analysts are somewhat more constructive on margins, writing that consensus estimates may be underestimating the benefit of Netflix's US price increase introduced in late March while overstating the impact of Brazil-related tax comparisons. Although Jefferies believes the company's full-year operating margin guidance of 31.5% could be increased later this year, it noted that visibility on the timing remains limited. Engagement will also be a closely watched metric. Jefferies expects first-half 2026 viewing hours to improve from the roughly 2% year-over-year growth recorded in the second half of 2025, with third-party web traffic data suggesting engagement has stabilized rather than weakened further. However, the brokerage does not believe a modest improvement would materially change the investment debate, pointing to difficult content comparisons in the second half of 2026 and the FIFA World Cup as potential headwinds. On the earnings call, Jefferies expects investors to seek updates on US subscriber churn following recent price increases, explanations for softer engagement trends, whether second quarter subscriber additions met internal expectations, and management's outlook for content spending beyond fiscal 2026. Despite its cautious near-term view, Jefferies maintained its ‘Buy’ rating, writing that it continue...

Lockheed Martin Corporation (NYSE:LMT) is included among Billionaire Steven Cohen’s Top 11 Dividend Stock Picks. Jordan Tan / Shutterstock.com On June 25, Jefferies lowered its price recommendation on Lockheed Martin Corporation (NYSE:LMT) to $575 from $595. It reiterated a Hold rating on the stock. The firm expects second-quarter revenue growth to accelerate to 5%, but trimmed its earnings-per-share estimate to $6.80 from $6.89. That forecast also falls below the consensus estimate of $7.22, as Jefferies expects weaker margins in the company’s Aeronautics and Space businesses. During the Q1 2026 earnings call, Senior Vice President and CFO Evan Scott said the company was reaffirming its full-year 2026 financial guidance. He said the outlook remains in line with the expectations shared in January, including mid-single-digit sales growth, profit of $8.4 billion to $8.7 billion, and free cash flow between $6.5 billion and $6.8 billion. Scott added that margins are expected to improve as the year moves forward, with most of the improvement coming in the second half of 2026. He said the gains should be supported by the achievement of key production milestones and the retirement of major program risks. Lockheed Martin Corporation (NYSE:LMT) is an aerospace and defense technology company. It operates through four business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. While we acknowledge the potential of LMT as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 10 Best Dividend Stocks to Buy for Passive Income and 10 Best Canadian Dividend Stocks to Buy for the Next 5 Years Disclosure: None. Follow Insider Monkey on Google News.

Big banks are always among the first companies to report earnings every quarter. As banks are seen as bellwethers for the economy, investors can get a sense of what to expect from other sectors of the economy based on bank earnings. But there is one stock that might be considered a bellwether for the bellwethers -- Jefferies Financial (NYSE: JEF). Jefferies is a leading investment bank, and it reports earnings weeks before other big investment banks like Goldman Sachs (NYSE: GS), Morgan Stanley (NYSE: MS), and JPMorgan Chase (NYSE: JPM). That's because its quarter ends one month earlier than those other banks -- in this case, May 31. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » So while it might not be a total apples-to-apples comparison to the other banks, Jefferies results can certainly give investors a sense of how the quarter went for the other major banks, perhaps providing intel on whether they should buy leading up to earnings season. So how did Jefferies do? Here are some takeaways. Jefferies' fiscal second-quarter earnings, released June 24, were a mixed bag. Net earnings grew a solid 5% year over year to $226 million, or $1.02 per share, but it was short of estimates of $1.16 per share. Revenue also missed estimates, despite rising 37% year over year to $2.21 billion. Analysts anticipated $2.22 billion. The miss was the primary reason that Jefferies stock dropped about 8% the next day, June 25. The earnings and revenue, while strong, missed estimates due to weak asset management numbers. Asset management revenue tumbled 46% to $188 million in the quarter due to a difficult stock market environment from March through May. Also, it took a hit from losses by its subsidiary, Point Bonita, which had significant exposure to First Brands Group, a company that went bankrupt last fall. But on the plus side, Jefferies had blowout investment banking results. Investment banking, Jefferies' bread and butter, had a record quarter. This should get the attention of investors looking at earnings for Goldman Sachs and Morgan Stanley next month. Investment banking revenue surged to $1.2 billion, a 58% increase year over year. It was a record q...

(Updates with the latest stock movement in the headline and first paragraph.) Jefferies Financial

Jefferies Financial Group’s JEF second-quarter fiscal 2026 (ended May 31) adjusted earnings per share from continuing operations of $1.03 missed the Zacks Consensus Estimate of $1.09. However, the bottom line increased significantly from the prior-year quarter.Results were primarily aided by record investment banking advisory and underwriting net revenues, as well as record equities net revenues. However, a rise in expenses hurt the results to an extent.Net earnings attributable to common shareholders (GAAP) increased year over year significantly from $88 million to $226.2 million. Quarterly net revenues were $2.21 billion, up 35% from the prior-year quarter. The top line marginally missed the Zacks Consensus Estimate of $2.22 billion.Total non-interest expenses were $1.89 billion, up 26.1% from the year-ago quarter. The rise was due to an increase in almost all cost components, except for depreciation and amortization costs, cost of sales, and other expenses.As of May 31, 2026, book value per common share was $51.95, up from $49.96 as of May 31, 2025. Furthermore, adjusted tangible book value per fully diluted share increased from $32.84 to $34.55. As of May 31, 2026, total assets were $79.54 billion, up from $74.38 billion as of Feb. 28, 2026, while total shareholders’ equity was $10.57 billion, down modestly from $10.61 billion.The leverage ratio was 7.5 compared with 6.5 in the prior-year quarter, and the tangible gross leverage ratio was 9.0 compared with 7.9. Return on adjusted tangible shareholders’ equity was 12.8%, up from 5.5% in the prior-year quarter. Investment Banking & Capital Markets: Total Net revenues were $2.01 billion, rising 36.4% from the prior-year quarter. Investment Banking net revenues were $1.21 billion, up 57.5% year over year, driven by higher advisory and equity underwriting revenues, while debt underwriting remained solid but was lower year over year. Capital Markets net revenues were $799.3 million, up 13.5%, driven by increases in both Equities and Fixed Income net revenues.Asset Management: Net revenues were $187.7 million, up 21.4% from the year-ago quarter. Asset management fees and revenues, as well as investment return, declined year over year, but other investments, inclusive of net interest, increased. In the reported quarter, Jefferies repurchased 4 million common shares for $197 million, at an average price of $49.83...

This article first appeared on GuruFocus. Jefferies Financial Group (NYSE:JEF) shares slipped in after-market trading after the bank's second-quarter earnings missed Wall Street expectations. Earnings per share came in at $1.02, below the $1.16 average estimate from analysts in a Bloomberg survey, sending the stock down about 2% to $56.80 at 4:35 p.m. in New York. The pressure came partly from weaker asset-management fees and investment-return revenue, which fell 35% from a year earlier as Jefferies continued to deal with the fallout from Point Bonita's bets on First Brands Group. Warning! GuruFocus has detected 4 Warning Signs with JEF. Is JEF fairly valued? Test your thesis with our free DCF calculator. Still, the headline miss did not fully capture the strength inside Jefferies' core Wall Street businesses. Investment-banking revenue jumped 57%, marking the highest quarter on record for that business, helped by market share gains and stronger deal volumes. Trading also remained firm, with overall trading revenue rising nearly 14%, stock trading reaching a record, and fixed-income trading up 12% thanks to stronger activity in distressed, municipal securities and emerging-markets businesses. Management pointed to a possibly constructive setup for the rest of the year, even as wars, geopolitical tensions and capital-market risks remain part of the backdrop. Net income surged 157% from a year earlier to $226.2 million, while executives said they remain optimistic about the second half of 2026 because of current backlog and new business bookings. The main watch item could be sponsor-led M&A, which President Brian Friedman said has not yet fully reopened, leaving one possible upside driver for coming periods.

Jefferies (JEF) reported $2.21 billion in revenue for the quarter ended May 2026, representing a year-over-year increase of 35%. EPS of $1.03 for the same period compares to $0.43 a year ago. The reported revenue represents a surprise of -0.61% over the Zacks Consensus Estimate of $2.22 billion. With the consensus EPS estimate being $1.09, the EPS surprise was -5.51%. 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. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. 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: $187.72 million versus the two-analyst average estimate of $150.8 million. The reported number represents a year-over-year change of +21.4%. Net Revenues by Source- Total Investment Banking and Capital Markets Net revenues: $2.01 billion versus the two-analyst average estimate of $1.97 billion. The reported number represents a year-over-year change of +36.4%. Net Revenues by Source- Total Asset Management Net revenues- Investment return: $31.04 million compared to the $49.77 million average estimate based on two analysts. The reported number represents a change of -38.4% year over year. Net Revenues by Source- Total Asset Management Net revenues- Allocated net interest: $-22.94 million compared to the $-22.24 million average estimate based on two analysts. The reported number represents a change of +19.8% year over year. Net Revenues by Source- Total Capital Markets: $799.29 million compared to the $793.08 million average estimate based on two analysts. The reported number represents a change of +13.5% year over year. Net Revenues by Source- Total Capital Markets- Equities: $600.75 million versus the two-analyst average estimate of $590.7 million. The reported number represents a year-over-year change of +14.2%. Net Revenues by Source- Total Capital Markets- Fixed income: $198.54 million compare...