IGM Financial profit falls 24.5 percent, below forecast
TORONTO (Reuters) - Canada's IGM Financial Inc IGM.TO reported a 24.5 percent fall in quarterly net earnings on Friday, pressured in part by declining management fee margins.
Shares of IGM, one of the country's top mutual fund companies, fell 2.4 percent after the company said net earnings for the quarter ended Dec. 31 totaled C$148.9 million, or 59 Canadian cents a share. That compared with C$197.1 million, or 78 Canadian cents a share a year earlier.
Analysts had been expecting a profit of 85 Canadian cents a share, according to Thomson Reuters I/B/E/S.
"We believe that the miss against expectations was largely driven by lower revenues," said John Aiken, an equity analyst with Barclays, in a research note.
"While declining management fee margins is an industry wide concern, we have noticed some incremental moderation in IGM's numbers, as it seeks to realign pricing in order to facilitate longer-term fund sales."
Operating earnings for the quarter were 83 Canadian cents, excluding items, compared with 79 cents during the same year-ago period.
Total assets under management hit a record C$141.9 billion, compared to C$131.8 billion last year, while revenue was C$742.1 million versus C$702.9 million.
(Reporting by Solarina Ho; Editing by Tom Brown)
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