Home Capital shares soar in Toronto on third-quarter profit beat

Home Capital shares soar in Toronto on third-quarter profit beat
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TORONTO — Shares of Home Capital Group surged as much as 25 per cent after the alternative mortgage lender beat profit expectations for the third quarter.

The Toronto-based company reported net income of $32.6 million during the three months ended Sept. 30, up from $30 million during same period a year earlier.

Home Capital says the profit amounted to 41 cents per diluted share in its third quarter, compared with 37 cents during the same period in 2017.

Analysts expected earnings per share of 36 cents, according to Thomson Reuters Eikon.

The improvement came as Home Capital saw mortgage originations total $1.44 billion during the quarter, roughly 273 per cent higher than the same period a year ago when Home Capital was dealing with the fallout of its earlier liquidity crisis.

Home Capital’s shares in Toronto reached as high as $17.62 this morning, up from the stock’s previous close of $14.08.

Chief executive Yousry Bissada says its latest earnings “demonstrate continued progress in all lines of business.”

The Canadian Press

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