01:30 PM EDT, 05/02/2024 (MT Newswires) -- Great West Lifeco ( GWLIF ) reported Q1/24 underlying EPS of $1.09 compared with National Bank's $1.03 estimate and consensus of $1.01. Reported EPS stood at $1.03 vs. NBF's $1.00 estimate and consensus of $1.06.

Key Takeaways:

GWO reported a "solid set" of Q1/24 results, boosted by investment income, writes analyst Gabriel Dechaine. This driver reflected both the benefit of higher yields on its surplus capital and the first quarter of earnings from GWO's 6% stake in Franklin Templeton. Separately, Empower generated growth, albeit at a lower level than its recent run rate. "However, with full realization of Prudential synergies and potentially more acquisitions on the horizon, our outlook remains favourable for this segment," Dechaine adds. The Canadian Group business also continues to exceed National's expectations, which should be a positive read-through for its peers this quarter.

Target lifted by $1, to $43, maintain Sector Perform.

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