CORRECTED-Canada's IGM Financial Q4 adjusted EPS beats expectations, dividend up 10%

Overview

• Canada wealth manager's Q4 adjusted EPS beat analyst expectations, rising 21% yr/yr

• Company announced 10% increase in quarterly dividend

• Assets under management and advisement grew 14.7% yr/yr

Outlook

• IGM Financial did not provide specific guidance for future quarters or full year in its press release

Result Drivers

• NET INFLOWS - IGM Financial reported Q4 net inflows of C$2.2 bln, significantly higher than C$244 mln in Q4 2024

• ROCKEFELLER SALE - Proceeds from Rockefeller Capital Management equity sale contributed C$394.2 mln to Q4 results

• ASSET GROWTH - Assets under management and advisement increased 14.7% yr/yr, reaching C$310.1 bln

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 6 "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 IGM Financial Inc is C$68.00, about 9.7% above its February 11 closing price of C$62.01

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nCNWX4mWpa

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