Shares of IA Financial took a hit on Wednesday as the company’s fourth-quarter underlying earnings failed to meet expectations. Despite reporting a rise in net income to 256 million Canadian dollars ($189.3 million), the core earnings fell short, leading to a 9.2% drop in early trading.
Financial Overview
- Share Performance: Currently down 3.8% over the last year, with shares at C$85.11.
- Net Income: Increased from C$192 million to C$2.46 a share.
- Core Earnings: Declined to C$2.34 per share, missing analyst forecasts of C$2.48.
- Return on Equity: Core return on shareholders’ equity for the trailing 12 months stood at 14.4%.
Future Projections
iA Financial remains optimistic about its future performance, affirming expectations of 10%+ annual core per-share earnings growth and a core return on shareholders’ equity exceeding 15%.
Analysts’ Views
RBC Capital Markets analyst Darko Mihelic expressed a negative outlook on the quarterly results, highlighting missed core earnings and underperformance in the Insurance Canada arm and U.S. operations, especially in dealer services sales.
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