Overview

* Power Corp Q2 adjusted net earnings rise to C$883 mln, up from C$739 mln

* Adjusted net asset value per share increases 7.1% to C$64.76

* Co repurchased 4.4 mln shares for C$209 mln, indicating strategic capital management

Outlook

* Company expects continued growth in Wealthsimple's valuation due to strong performance

Result Drivers

* LIFECO GROWTH - Lifeco's adjusted net earnings rose 11% due to growth in Wealth and Group Benefits businesses, despite higher charges from transformation initiatives

* IGM PERFORMANCE - IGM's adjusted net earnings increased 15%, driven by strong results across core operations and strategic investments

* WEALTHSIMPLE VALUATION - Power's interest in Wealthsimple rose 21% in value, reflecting strong business performance and increased peer multiples

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$1.38

Adjusted

EPS

Q2 C$64.76

Adjusted

Net

Asset

Value

Per

Share

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the life & health insurance peer group is "buy"

* Wall Street's median 12-month price target for Power Corporation of Canada ( PWCDF ) is C$57.00, about 0.3% above its August 6 closing price of C$56.82

* The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release:

(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.)