06:24 AM EDT, 09/26/2024 (MT Newswires) -- Jefferies Financial Group ( JEF ) late Wednesday reported higher fiscal third-quarter results on a yearly basis amid gains across its investment banking and asset management divisions.

The financial services company's earnings came in at $0.75 per share for the quarter ended August, jumping from $0.22 the year before. Four analysts surveyed by Capital IQ expected $0.78. Net revenue advanced 42% to $1.68 billion, but that was shy of three analysts' estimates for $1.71 billion.

Shares of the company were down 5.4% in Thursday's premarket activity.

The top line reflects "strong performance and continued momentum in investment banking, with particularly strong performance in advisory," Chief Executive Richard Handler and President Brian Friedman said in a statement. "We are pleased with the strength and direction of our profit margin and return metrics, and are optimistic about the balance of this year and our outlook for 2025," according to the executives.

Investment banking net revenue soared 47% year over year to $949.5 million, driven by an increase in advisory activity attributable to market share gains and improving market conditions, Handler and Friedman said. Advisory revenue climbed to $592.5 million, representing the company's "best quarter on record," from $335.3 million amid increased global mergers and acquisitions.

Total capital markets revenue inclined to $670.6 million in the third quarter from $523.6 million in the prior-year period due to stronger performance in equities, which Jefferies Financial ( JEF ) attributed to increased volume and more favorable trading opportunities. Asset management net revenue jumped to $59 million from $10.1 million the year before.

"Our investment banking pipeline remains strong heading into year-end and momentum across all of our business lines continues," according to Handler and Friedman. The executives said the company is well positioned within the current backdrop of declining interest rates and increasing activity, buoyed by demand for capital markets and advisory deal flow.

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