Canaccord Genuity Climbs as Profit Tops EstimatesKatia Dmitrieva
Canaccord Genuity Group Inc., Canada’s largest non-bank brokerage, climbed in Toronto trading after fiscal fourth-quarter profit beat analysts’ estimates on gains in its U.S. and U.K. businesses.
Canaccord Genuity rose 4.2 percent to C$11.55 at 9:42 a.m., the highest since August 2011. Shares have gained 66 percent this year, compared with the 7.7 percent advance of the benchmark Standard & Poor’s/TSX Composite Index.
Profit for the period ended March 31 was 25 cents a share excluding some items, the Toronto-based firm said yesterday in a statement, topping the 20-cent average estimate of five analysts surveyed by Bloomberg. Net income climbed to C$25.9 million ($23.7 million), or 22 cents a share, from C$6.42 million, or 4 cents, a year earlier. Revenue increased 16 percent to a record C$253.7 million.
“Our strong results were driven primarily by the achievement of our capital markets operations and the resurgence in our U.S. and U.K. markets,” Chief Executive Officer Paul Reynolds, 51, said today on a conference call. The firm may consider special dividends in the future, he said.
Capital markets revenue in the U.K. and Europe climbed 39 percent to C$63.2 million and rose 58 percent to C$71.3 million in the U.S., according to the company.