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  5. POW: Could you comment on the latest Q please. [Power Corporation of Canada Subordinate Voting Shares]
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Q: Could you comment on the latest Q please. The income drop seems rather significant. Do you think the income drop is short term? Thanks.
Asked by Robert on November 14, 2024
5i Research Answer:

EPS of $0.84 missed estimates of $1.15 and revenues of $4.27B beat estimates of $3.77B. Consolidated net earnings of $784M did mark a significant decline from $1.097B for the same period in the prior year, but this was largely due to market conditions negatively impacting Great-West Lifeco's operations, weak investment performance from its alternative asset platforms, and higher operating expenses. POW continues to focus on growth in alternative assets and sustainbility-oriented investments through its Sagard and Power Sustainable platforms, and while the company missed expectations, the stock is bouncing back today and it continues to trend in the right direction over the past several months. We view the drop as likely being short term, although it could consolidate here in the coming months.