Canaccord Genuity Shares Fall as Market Slowdown Hits Revenue, Profit in First Quarter

By Adriano Marchese

Canaccord Genuity Group Inc.’s shares tumbled in early trading on Friday after the Canadian financial-services firm said that slowing global markets hurt revenue and profit in the first quarter.

At 9:51 am, shares were trading 11% lower at C$8.81.

On Thursday after markets closed, Canaccord reported total revenue excluding certain items fell more than 37% to 328.8 million Canadian dollars, the equivalent of US$255.6 million.

Analysts polled on FactSet expected revenue of C$409.3 million.

Adjusted earnings per share fell 85% to C$0.11 from C$0.73 a share, short of analysts’ expectations of C$0.31.

The company said it expects economic conditions to continue to tighten before they improve.

“The abrupt deceleration in global markets impacted first fiscal quarter financial performance in all of our capital markets businesses and to a lesser degree, our wealth management businesses,” President and Chief Executive Dan Daviau said.

Write to Adriano Marchese at adriano.marchese@wsj.com

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