Jameson Berkow

Anchor, Reporter

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Canaccord Genuity Group Inc. announced a much stronger end to the 2021 calendar year after markets closed Friday than Bay Street was expecting, pushing its share price higher Monday.

The financial services firm, which is legally based in Vancouver but operates primarily out of Toronto, reported preliminary results for the third quarter of its 2022 fiscal year that included $550 million in total revenue with net income of roughly $75 million. That translates to approximately $0.69 in earnings per share or 41 per cent above the average analyst estimate of $0.49 in earnings per share.

In the early moments of Monday trading on the Toronto Stock Exchange, the company’s stock surged as much as 4.7 per cent to $16.05 per share from its Friday closing price of $15.33.

Full details of Canaccord’s financial performance will be released on Feb. 9, though the company said it was announcing preliminary results because the official release date is after the expiry of its $100-million share repurchase plan. Structured as a Dutch auction, meaning investors can select from a range of prices, the issuer bid is currently set to expire on Jan. 27.

Advisory revenue, which includes money Canaccord made from assisting other companies with mergers and acquisitions, was not specified in the preliminary results. However, M&A-related revenue hit a record $139.4 million in the company’s prior quarter.

Canaccord has also closed two major acquisitions of its own over the past month. The company paid 164 million British pounds for U.K.-based financial planning and wealth management firm Punter Southall and an undisclosed sum for Sawaya Partners, a consumer-focused M&A advisory firm in the United States.