Canada's Guardian Capital Q2 revenue misses estimates

Overview

• Guardian Capital fiscal Q2 revenue misses analyst expectations

• Net earnings attributable to shareholders swing to CAD 55.2 mln profit

• Total client assets decrease mainly due to currency fluctuations

Result Drivers

• REVENUE MISS - Revenue of CAD 90 mln missed analyst expectations of CAD 98 mln, impacted by lower management fee revenue and interest income

• CURRENCY IMPACT - Decrease in total client assets attributed to CAD 6.5 bln reduction in US segment due to weaker US dollar

• SECURITIES GAINS - Net gains of CAD 55 mln from securities portfolio drove net earnings improvement

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the investment management & fund operators peer group is "buy"

• Wall Street's median 12-month price target for Guardian Capital Group Ltd is C$53.00, about 24.1% above its August 6 closing price of C$40.25

• The stock recently traded at 33 times the next 12-month earnings vs. a P/E of 30 three months ago

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