Canada's Sprott Q3 net income jumps 67% on higher AUM
Overview
Canada asset manager's Q3 net revenue and adjusted EBITDA rose sharply yr/yr
Company's Q3 net income increased 67% yr/yr, driven by higher average AUM rose 3% to $57.3 bln from end June
Quarterly dividend raised 25% following strong financial results
Outlook
Company did not provide specific financial guidance for the current quarter or full year
Result Drivers
MARKET APPRECIATION - Co said stronger precious metals and critical materials prices contributed to market value appreciation across most fund products in the qtr
NET INFLOWS TO CRITICAL MATERIALS - Co reported positive net sales in critical materials strategies, offsetting net redemptions in precious metals strategies
HIGHER MANAGEMENT FEES - Increase in management fees attributed to higher average AUM from net inflows and market value appreciation
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | $0.86 | ||
Q3 Net Income | $22.004 mln | ||
Q3 Adjusted EBITDA | $46.02 mln | ||
Q3 Assets Under Management | $57.32 bln | ||
Q3 Dividend | $0.50 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "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 Sprott Inc is C$189.00, about 28.3% above its November 3 closing price of C$147.35
The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)