Wealth manager CI Financial's Q2 adjusted EPS beats expectations
Overview
CI Financial Q2 adjusted EPS of C$0.89 beats analyst expectations
Adjusted net income down 8.7% from prior quarter due to lower fees
Outlook
CI expects acquisition by Mubadala to close by August 12, 2025
Result Drivers
ASSET MANAGEMENT FEES - Decline in fees due to lower average assets under management and weaker U.S. dollar impacting U.S. revenues
EXPENSES - Adjusted expenses rose due to higher SG&A and Advisor and Dealer fees in Canada
REVENUE INCREASE - Total net revenues increased from Q1, driven by factors excluding non-operating items
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Adjusted EPS | Beat | C$0.89 | C$0.88 (1 Analyst) |
Q2 EPS |
| C$0.97 |
|
Q2 Adjusted Net Income |
| C$128.50 mln |
|
Q2 Net Income |
| C$141.80 mln |
|
Q2 Adjusted EBITDA |
| C$304.30 mln |
|
Q2 Adjusted EBITDA Margin |
| 39.2% |
|
Q2 Pretax Profit |
| C$173.60 mln |
|
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is no "strong buy" or "buy", 2 "hold" and 2 "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 CI Financial Corp is C$32.00, about 0.1% above its August 1 closing price of C$31.96
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 7 three months ago
Press Release: ID:nBw40XSv2a
