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Power Corp. beats expectations as Q3 profit surges 70% to $350 million

MONTREAL – Power Corporation of Canada handily beat expectations as net profit attributable to participating shareholders surged 70 per cent to $350 million in the third quarter.

The company (TSX:POW) reported Friday that it earned 76 cents per share for the period ended Sept. 30, up from 45 cents per share or $206 million a year ago.

Revenues increased 16.8 per cent to $9.33 billion from nearly $8 billion in the prior-year period.

The Montreal-based financial group’s main subsidiary, Power Financial Corp. (TSX:PWF), earned $595 million or 83 cents per share, up from $434 million or 61 cents per share in the third quarter of 2013. Revenues rose to $9.13 billion from $7.8 billion.

Power Corp. was expected to earn 62 cents per share, while Power Financial was forecast to earn 74 cents per share, according to analysts polled by Thomson Reuters.

The parent company has a 65.7 per cent economic interest in Power Financial which, in turn, is the parent of Winnipeg-based Great-West Lifeco (TSX:GWO) and IGM Financial (TSX:IGM).

Together, the companies are involved in life insurance, wealth management and investments.