Jefferies Financial Group Inc. (JEF) stock plummeted 6.15% in the pre-market trading session on Friday, following the release of its fiscal fourth-quarter results.
The investment banking firm reported a substantial year-over-year increase in earnings, surging 212% to $205.7 million, or $0.93 per share, driven by strong performance in its investment banking division. However, the results fell slightly short of analysts' expectations of $0.97 earnings per share.
While investment banking revenue soared 73% to $986.8 million due to market share gains and increased global M&A activity, concerns arose over the sustainability of this growth. Additionally, analysts at Morgan Stanley trimmed their price target on JEF from $97 to $93, maintaining an Overweight rating.
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