IGM Financial profit up, but misses estimates

Reuters

TORONTO, Nov 7 (Reuters) - IGM Financial Inc saidon Thursday its profit and assets under management rose in thethird quarter, but Canada's largest independent asset managermissed analysts' expectations slightly as investment income camein below forecasts.

Net earnings for the three months ended Sept. 30 wereC$193.4 million ($185 million), or 77 Canadian cents a share,compared with C$186.2 million, or 73 Canadian cents a share, inthe same period last year.

Analysts had expected a per share profit of 79 Canadiancents, according to Thomson Reuters I/B/E/S.

Helped by stronger equity markets, revenue at theWinnipeg-based company rose to C$667.5 million in the quarterfrom C$634.1 million in the third quarter of 2012, while assetsunder management climbed to C$126 billion from C$119.3 billion.

"While a miss, we note that net investment and other incomecame in C$10 million below our forecasts, almost completelyaccounting for the difference against our estimates," BarclaysCapital analyst John Aiken wrote in a research note.

"We view this as an unusually low level and do not believethat it will necessarily impair the outlook for IGM's futureearnings."

IGM is a unit of Power Financial Corp, which is inturn controlled by Montreal's Desmarais family through its PowerCorp holding company.

View Comments (0)