November 3, 2010 / 10:57 AM / 7 years ago

CORRECTED - CORRECTED-UPDATE 1-Canaccord Financial Q2 profit beats estimates

(Corrects headline, first bullet point and paragraph 1 to show that adjusted profit beat analyst estimates, not missed)

* Q2 adj EPS C$0.14 vs est C$0.13

* Revenue of C$149.3 mln lags est C$155.5 mln

Nov 3 (Reuters) - Canadian brokerage firm Canaccord Financial Inc (CF.TO) reported a 44 percent rise in quarterly profit helped mainly by a rise in revenue from its investment banking business.

Net income for the second quarter was C$9.7 million ($9.62 million), or 12 Canadian cents a share, compared with C$6.7 million, or 12 Canadian cents a share, a year ago.

Excluding merger related expenses, earnings were 14 cents a share, beating analyst estimates of 13 Canadian cents. Revenue rose 21 percent to C$149.3 million, but lagged analysts’ expectations of C$155.5 million.

“Though we are encouraged by the dramatic market turnaround the last two months, volatile market activity persisted through much of July and August and had a noticeable impact on business levels during our fiscal second quarter,” CEO Paul Reynolds said.

As investors and corporate issuers regain confidence in the markets, the climate for trading and investment banking activity should continue to improve, he said.

Advisory fees fell 13 percent to C$13.2 million. Revenue from the United States fell 30 percent on a decline in both public and private offerings and advisory work.

Canaccord is best known for a strong presence in Canada’s mining sector, particularly among juniors and midcaps. The company, with 37 offices worldwide, has also developed a strong presence in China.

Shares of the Vancouver-based company closed at C$10.78 on Tuesday on the Toronto Stock Exchange. ($1=1.008 Canadian dollar) (Reporting by Sweta Singh in Bangalore; Editing by Vinu Pilakkott)

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