Canaccord Genuity Climbs After Profit Beats Analysts’ Estimates

Canaccord Genuity Group Inc., Canada’s largest nonbank brokerage, rose the most in two months after posting profit and revenue that beat analysts’ estimates.

Canaccord climbed 4.9 percent to C$7.04 at 9:52 a.m. in Toronto, the most intraday since April 15 and the best performance in the 248-company Standard & Poor’s/TSX Composite Index. The shares have slid 9.8 percent this year.

Net income fell for the second straight quarter as the firm took a C$22.4 million ($18 million) charge for restructuring costs, Canaccord said Tuesday in a statement after the close of regular trading.

The net loss for the period ended March 31 was C$26.3 million, or 33 cents a share, compared with profit of C$25.9 million, or 22 cents, a year earlier. Adjusted profit, which excludes some items, was 5 cents a share, topping the 3 cent average estimate of five analysts surveyed by Bloomberg. Revenue fell 8.4 percent to C$232.5 million, compared with estimates of $206.3 million.

Canaccord expects to name a top executive by the end of September following the unexpected death two months ago of Chief Executive Officer Paul Reynolds, Chairman and interim CEO David Kassie said on a conference call Wednesday with analysts.

“We are engaged in a diligent selection process and we expect to appoint a new chief executive officer during the first half of fiscal 2016,” Kassie, 59, said.

Reynolds, 52, who’d been CEO of Canaccord since 2007, died in April after a health incident during the swim portion of a triathlon in Kona, Hawaii.

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