The investment bank's deep ties to the auto- parts maker are likely to draw questions at its annual investor day Thursday
Jefferies Financial Group Inc. moved to soothe a growing fear among investors over the fallout from the bankruptcy of its client, auto-parts seller First Brands, by saying any impact to its finances can be readily “absorbed” and wouldn't impact its business.
The Wall Street firm sought to reassure investors it can absorb any potential losses related to the First Brands bankruptcy, after its shares fell 18% last week.
Jefferies Financial Group said on Sunday its exposure to bankrupt auto parts maker First Brands Group is limited and any potential losses will be "readily absorbable".
Jefferies shares fell 7.9% on Wednesday after disclosing exposure to bankrupt First Brands, with investors reassessing related trade-finance and CLO links.
Jefferies Financial Group (NYSE:JEF) shares came under pressure after it was revealed that the firm has significant exposure to the bankrupt auto parts supplier First Brands, with estimates of potential losses around $161 million. The investment bank's exposure is primarily through its Leucadia Asset Management fund, Point Bonita Capital, which holds approximately $113 million in receivables tied to First Brands.
Jefferies' Q3 EPS of $1.05 beats estimates on strong IB and asset management results, but shares fell 3.6% as expenses rose.
Although the revenue and EPS for Jefferies (JEF) give a sense of how its business performed in the quarter ended August 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Jefferies (JEF) came out with quarterly earnings of $1.05 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.75 per share a year ago.
Can Jefferies' mid-market strength and partnerships outgrow Morgan Stanley's business diversification efforts and steadier returns? Let's find out.
Jefferies (JEF) witnessed a jump in share price last session on above-average trading volume. The latest trend in earnings estimate revisions for the stock suggests that there could be more strength down the road.
Jefferies (JEF) reported earnings 30 days ago. What's next for the stock?