Canadian financial services firm Canaccord Genuity saw a surge in its shares on Thursday following a strong earnings report for the latest quarter. The company attributed its success to continued growth in wealth management and a return to profitability in its capital markets businesses.
Share Price and Performance
In morning trading, Canaccord Genuity's shares were up 6.8% at C$7.70, significantly reducing the overall decline of 34% over the past 12 months.
Earnings Beat Estimates
On an adjusted basis, the company reported earnings of C$0.20 per share for the three months ending December 31, surpassing the mean estimate of C$0.13 from analysts polled by FactSet.
Canaccord Genuity's third-quarter revenue showed a 1.8% increase to C$389.1 million. The company's global wealth management revenue experienced a substantial 8.5% growth compared to the previous year, reaching C$195 million. However, capital markets operations saw a decline of 3.6%, earning revenue of C$189.8 million for the fiscal quarter. Advisory revenue also dipped 0.8% to C$74.6 million.
Overall, Canaccord Genuity's strong performance in wealth management and a return to profitability in capital markets contribute to its positive earnings report.