Power Corp. of Canada Earnings: Performance Remains Steady at Great-West and IGM Financial

Power Corporation of Canada’s second-quarter results were largely in line with our expectations, as the performance at its largest subsidiaries Great-West and IGM Financial remained stable. The firm reported adjusted net earnings of CAD 847 million or CAD 1.27 per share, compared with CAD 647 million or CAD 0.97 per share in the prior-year second quarter. The adjusted earnings from the publicly listed operating companies (Great-West, IGM, and GBL) were reported at CAD 842 million, compared with CAD 715 million in the previous year. The company has declared a quarterly dividend of 52.50 cents per share, representing a 5.4% dividend yield as per the current stock price. Power Corporation's adjusted net asset value stood at CAD 48.86 as of the end of the second quarter, which compares with CAD 46.89 at the beginning of the quarter. We are maintaining our CAD 41.50 fair value estimate for the firm after incorporating results.