Bloomberg News

Canaccord Financial Third-Quarter Profit Misses Estimates

February 06, 2013

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)

To contact the reporters on this story: Sean B. Pasternak in Toronto at spasternak@bloomberg.net; Doug Alexander in Toronto at dalexander3@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; David Scanlan at dscanlan@bloomberg.net


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