August 3, 2011 / 11:39 PM / 7 years ago

UPDATE 1-Canaccord Q1 profit misses on lower trade volumes

* Q1 adj EPS C$0.17 vs est C$0.23

* Q1 rev up 5 pct at C$159.8 mln

Aug 3 (Reuters) - Canaccord Financial Inc (CF.TO) on Wednesday reported an increase in quarterly profit, but the results fell short of analysts’ estimates as market volatility and lower trading volumes hit the Canadian investment bank and brokerage’s core businesses.

Canaccord, a Vancouver, British Columbia-based company with a strong presence in the mining sector, said fiscal first-quarter profit was C$13.2 million ($13.7 million), up from C$8.0 million in the same period last year.

On a per share basis, Canaccord earned 16 Canadian cents compared with 7 Canadian cents in the year-ago quarter. Adjusted net income, which excludes acquisition-related items, was 17 Canadian cents per share.

Revenue for the quarter, ended June 30, was C$159.8 million, up 5 percent, bolstered by advisory revenue of C$22.5 million.

Analysts on average were expecting the company to earn 23 Canadian cents on revenue of C$178.5 million, according to Thomson Reuters I/B/E/S.

Canaccord bought Genuity Capital Markets in April 2010 and its revenue multiplied on the back of booming advisory fees.

On Sunday it said it agreed to buy half of Australian equities advisory firm BGF Capital Group Pty Ltd, one of Australia’s fastest-growing boutique equities advisory firms, for A$40 million (US$44 million, C$42 million) to expand into Australia and Hong Kong. [ID:nN1E76U0A8]

$1 = 0.965 Canadian Dollars Reporting by Abhiram Nandakumar in Bangalore; Editing by Steve Orlofsky

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