Canaccord Financial Third-Quarter Profit Misses EstimatesSean B. Pasternak and Doug Alexander
Canaccord Financial Inc., Canada’s largest non-bank brokerage, said fiscal third-quarter profit quadrupled as foreign acquisitions boosted revenue. Results fell short of analysts’ estimates.
Profit for the period ended Dec. 31 was C$10.3 million ($10.3 million), or 8 cents a share, compared with C$2.5 million, or 1 cent, a year earlier, the Toronto-based firm said today in a statement. Revenue rose 56 percent to C$230 million.
The company’s Canaccord Genuity unit had record advisory revenue of C$69.3 million in the quarter, an 80 percent increase and posted growth in its U.K. management business. The investment bank said it led or co-led 33 transactions globally in the quarter for proceeds of C$888 million.
“Over half of Canaccord’s revenue is now earned in markets outside of Canada,” Paul Reynolds, president and chief executive officer, said in a statement.
The company recorded “restructuring costs and other significant items” of C$11.9 million. Excluding that, Canaccord earned 17 cents a share, missing the 20-cent-a-share average of four estimates compiled by Bloomberg.
Canaccord rose 0.7 percent to C$7.58 at 4 p.m. trading in Toronto.
(Canaccord will hold a conference call to discuss quarterly results at 5 p.m. Toronto time at +1-888-231-8191 in North America or at www.canaccordfinancial.com/EN/NewsEvents/Pages/Events.aspx)