Jefferies Financial Group Inc. (NYSE:JEF) reported its Q2 results, with EPS coming in at $0.45, missing the Street estimate of $0.71. Revenue came in at $1.37 billion, in line with the Street estimate of $1.37 billion.

Average diluted shares for the quarter were 252 million, down 32.5% from Q1/18. Analysts at Oppenheimer continue to believe that there is significant unrealized value in the company's merchant banking investments that could fuel further buybacks.

According to the analysts, CEO Handler clearly delights in trying to exploit the difference between what he sees as the intrinsic value of his franchise and assets and market values that are often disconnected.