Canaccord Genuity Group (TSE:CF) rose to the highest in a month after Canada’s largest non-bank brokerage posted fisca fourth-quarter profit that beat analysts’ estimates.
Shares gained 4.6 percent to C$7.02 at 1:40 p.m. in Toronto after reaching C$7.12, the highest intraday price since May 5.
Net loss was C$26.3 million, or $0.33 per share, for the period ended March 31, compared with profit of C$25.9 million, or C$0.22 per share, a year earlier, the Toronto-based company said in a statement late yesterday. Net income fell for the second straight quarter as the firm took a C$22.4 million charge for restructuring costs.
Adjusted profit, which excludes some items, was C$0.05 per share, topping the $0.03 average estimate of five analysts surveyed by Capital IQ.
Revenue fell 8.4 percent to C$232.5 million, compared with estimates of $206.3 million.
"Despite a solid start to the fiscal year, a dramatic shift in global market conditions reduced activity levels in our capital markets business, which produced results below our expectations." chief executive officer David Kassie said in the statement.
"We have made significant efforts to address our operating structure and fixed costs, to better position our business for long-term, sustainable profitability in an evolving market."
Canaccord expects to name a top executive by the end of September following the unexpected death two months ago of chief executive officer Paul Reynolds, Bloomberg reported, citing Kassie as saying on a conference call today with analysts.
Also yesterday, the company approved a quarterly dividend of $0.05 per common share payable on July 2, 2015 to common shareholders with a record date of June 19, 2015