Q: What is your evaluation of Power Corp (POW:CA) latest quarterly? What portion of its business is in Europe and to what extent does it make it more attractive?
André
André
5i Research Answer:
EPS was $1.28, missing estimates of $1.39; revenue was $8.64B. Book value $35.56. EPS rose from $1.06 in the prior year period. POW bought back $430M in shares last year. The dividend was raised by 9%. Great West performed very well. IGM, not so much. Despite the 'miss', we are comfortable with the results and certainly the very low valuation is an attraction. POW last year had $11.5B in revenue in Europe, of a total of $34B. Until the US figures itself out, we would consider this a mild positive.