By Kathryn Hardison
Jefferies Financial Group Inc. reported lower revenue and a slump in second-quarter earnings as it faced a challenging environment in capital markets.
The New York-based company posted earnings of $114 million, or 45 cents per share, compared with $352.6 million, or $1.30 per share, a year earlier. Analysts polled by FactSet had expected earnings of 51 cents per share.
Net revenue was $1.36 billion for the quarter, compared to $1.95 billion a year earlier. A consensus of three analysts expected $1.26 billion in overall revenue.
Combined net income from Financial Markets was $416 million, down from a year ago.
The company also said its board approved the repurchase of up to $250 million of common stock.
Chief Executive Richard Handler and Chairman Brian Friedman said in a joint statement that the second quarter results are “reasonable in the face of an extremely challenging capital markets environment, with some markets virtually closed to new issuance.”
Handler and Friedman said they believe the company’s position in the market “continues to strengthen” and the company “will reap the benefits as conditions normalize and the new issue market picks up.”
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