Power Corp. Earnings: Strong Great-West Life Results Drive a Good Quarter; Increasing Valuation

Power Corporation of Canada reported a good set of numbers in the first quarter. The firm reported adjusted net earnings of CAD 727 million or CAD 1.12 per share in the first quarter, compared with CAD 588 million or CAD 0.88 per share in the first quarter of the previous year. The company has declared a quarterly dividend of 56.25 cents per share, which represents a 5.6% dividend yield as per the current stock price. Power Corporation's adjusted net asset value, or NAV, per share stood at CAD 53.10 as of the end of first-quarter 2024, which compares with CAD 53.53 at the beginning of the quarter. The company has continued to allocate capital to buybacks given the difference in NAV and share price of the company and has repurchased approximately CAD 97 million of shares in the first quarter. We are increasing our fair value estimate for the firm to CAD 42.00 from CAD 40.00 after incorporating the first-quarter results.