Canadian investment firm Onex Q2 net earnings rise

Overview

• Onex Q2 net earnings rise to $229 mln from $168 mln year-over-year

• EPS for Q2 increases to $3.30 from $2.19, reflecting strong performance

• Company repurchased over 1.8 mln shares, enhancing shareholder value

Outlook

• Onex sees continued momentum across business segments

• Company expects strong year for Credit team with fee-generating asset growth

• Onex anticipates net proceeds of $95 mln from WestJet sale

Result Drivers

• INVESTING CAPITAL GROWTH - Onex reports a 4% return in investing capital per share for Q2, driven by private equity and credit investments

• FEE-GENERATING ASSETS - Fee-generating capital increased to $41 bln, with private equity and credit growing by 20% and 14% respectively since year end

• STRATEGIC TRANSACTIONS - Onex completed sales of stakes in WestJet and Precision Concepts International, contributing to capital returns

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 "hold."

• Wall Street's median 12-month price target for Onex Corp is C$138.50, about 19.4% above its August 6 closing price of C$111.62

Press Release: ID:nGNX2t5LBP