IGM Financial profit up, but misses estimates
TORONTO (Reuters) - IGM Financial Inc (IGM.TO: Quote) said on Thursday its profit and assets under management rose in the third quarter, but Canada's largest independent asset manager missed analysts' expectations slightly as investment income came in below forecasts.
Net earnings for the three months ended September 30 were C$193.4 million ($185 million), or 77 Canadian cents a share, compared with C$186.2 million, or 73 Canadian cents a share, in the same period last year.
Analysts had expected a per share profit of 79 Canadian cents, according to Thomson Reuters I/B/E/S.
Helped by stronger equity markets, revenue at the Winnipeg-based company rose to C$667.5 million in the quarter from C$634.1 million in the third quarter of 2012, while assets under management climbed to C$126 billion from C$119.3 billion.
"While a miss, we note that net investment and other income came in C$10 million below our forecasts, almost completely accounting for the difference against our estimates," Barclays Capital analyst John Aiken wrote in a research note.
"We view this as an unusually low level and do not believe that it will necessarily impair the outlook for IGM's future earnings."
IGM is a unit of Power Financial Corp PWF.TO, which is in turn controlled by Montreal's Desmarais family through its Power Corp POW.TO holding company.
(Reporting by Andrea Hopkins; Editing by Peter Galloway)
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