Yahoo Finance

• Earnings Growth: Great West Life and IgM reported 12% year-over-year earnings growth.

• Adjusted Net Earnings: $542 million for the quarter, compared to $1 billion in the same quarter last year.

• Adjusted Net Earnings Per Share: 84, compared to $1.52 in the same quarter last year.

• Net Asset Value (NAV) Per Share: $57.92 at the end of the quarter, up 15% from the end of Q2.

• Dividend: Quarterly dividend declared at 56.25 per share.

• Great West Life Base Earnings: Over $1 billion, marking the sixth consecutive quarter of base earnings increases.

• Return on Equity (ROE): 17.3% for Great West Life, above the high end of its targeted range.

• IGM Financial Earnings Growth: Power's share of earnings up 12% year-over-year.

• Well Simple Valuation Increase: 46% increase in valuation.

• Cash and Cash Equivalents: Ended slightly lower at $1.4 billion, with approximately $1 billion available cash.

• Share Buybacks: Over $120 million repurchased under the NCIB program.

• Standalone Businesses: Non-cash impairment charges at LMPG and Lion.

• Sale of Peak: Expected gain of almost $200 million US upon closing next quarter.

• Warning! GuruFocus has detected 5 Warning Sign with PWCDF.

Release Date: November 13, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Power Corporation of Canada (PWCDF) reported strong earnings growth from its main operating businesses, Great West Life and IgM Financial, with both achieving a 12% increase in earnings per share year over year.

• The company's net asset value (NAV) increased by 15% during the quarter, driven by strong performance across its portfolio, including significant contributions from Great West Life, IgM Financial, and Well Simple.

• Power Corporation of Canada (PWCDF) declared a quarterly dividend of 56.25 cents per share, maintaining its commitment to returning capital to shareholders.

• The company successfully monetized its standalone businesses, including the sale of Peak, which is expected to generate a gain of almost $200 million USD upon closing.

• Well Simple continues to expand its client base and product offerings, contributing to a 46% increase in its valuation during the quarter.

Negative Points

• Adjusted net earnings from continuing operations decreased to $542 million compared to $1 billion in the same quarter last year, partly due to non-recurring items.

• Power Sustainable reported fee-related losses and acquisition costs, impacting overall financial results.

• The company faced non-cash impairment charges at LMPG and Lion, affecting the standalone businesses' contribution to the overall financial performance.

• Despite strong NAV growth, the company's NAV discount remains around 23-24%, indicating a potential undervaluation in the market.

• Mackenzie, part of IgM Financial, is still experiencing negative net flows, although there has been some improvement in its net situation.