Jefferies shares down 9% after revenue falls short on capital markets headwinds
Shares of Jefferies Financial Group Inc. dropped 8.6% to $37.85 on Wednesday after the bank reported a 3% drop in fourth-quarter revenue to $1.81 billion, short of the analyst target of $1.9 billion.
While the bank's investment banking revenue totaled $1.18 billion with record advisory net revenue, capital markets revenue of $438 million fell 30% over the year-ago period "due to challenging market conditions for fixed income trading leading to lower volumes," the firm said. If the company's stock price loss of 8.6% holds through Wednesday's trading session, it'll mark the biggest one-day drop in the company's share price since April 1, 2020, when it fell 9.4%