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The Carlyle Group Inc. (CG - Free Report) shares appreciated 2.2% after reporting third-quarter 2021 post-tax distributable earnings of $1.54 per share, which comfortably surpassed the Zacks Consensus Estimate of $1.04. Also, the bottom line increased from 40 cents in the year-ago quarter.
While a rise in revenues on higher fees and assets under management (AUM) growth supported the results, increased expenses created a headwind.
Net income available to common stockholders (GAAP basis) was $523.8 million or $1.46 per share compared with $295.5 million or 82 cents in the prior-year quarter.
Revenues & Expenses Increase
Segment revenues were $1.5 billion, significantly increasing from $496.5 million in the year-ago quarter. The rise primarily resulted from higher fees and investment income. Also, the top line outpaced the Zacks Consensus Estimate of $1 billion.
Fee revenues in the third quarter increased 11.6% year over year to $440.1 million. A rise in fund management fees, and transaction and portfolio advisory fees supported the increase. Realized performance revenues significantly increased to $1 billion.
Total segment expenses amounted to $793.2 million, flaring up from $344.7 million in the prior-year quarter. The increase was primarily due to a rise in employee compensation and benefits expenses.
AUM Climbs
As of Sep 30, 2021, total assets under management (AUM) were a record $293 billion, up 6% from the prior quarter. This was primarily attributed to a robust increase across the company’s carry fund portfolio and strong fundraising activity.
Fee-earning AUM for the reported quarter totaled $176 billion, up marginally from the prior quarter.
Dividend Update
On Oct 28, Carlyle’s board of directors announced a quarterly cash dividend of 25 cents per share. The dividend will be paid out on Nov 17 to shareholders of record as of Nov 9, 2021.
Conclusion
Carlyle put up a decent show in the third quarter in terms of earnings and revenues. Its efforts to expand operations by entering business avenues are encouraging. Also, an increasing AUM balance is likely to continue aiding top-line growth. However, a persistent rise in expenses is expected to deter bottom-line growth.
Carlyle Group Inc. Price, Consensus and EPS Surprise
BancorpSouth Bank delivered net operating earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents. However, the bottom line compares unfavorably with the 69 cents reported in the year-ago quarter.
Bank of Hawaii Corporation (BOH - Free Report) reported third-quarter 2021 earnings per share of $1.52, surpassing the Zacks Consensus Estimate of $1.34. Also, the bottom line compares favorably with the 95 cents reported in the prior-year quarter.
New York Community Bancorp, Inc.’s (NYCB - Free Report) third-quarter 2021 earnings per share (non-GAAP) of 31 cents missed the Zacks Consensus Estimate of 33 cents. Nonetheless, the bottom line rose 35% year over year.
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Carlyle (CG) Stock Gains 2.2% on Q3 Earnings Beat, AUM Rise
The Carlyle Group Inc. (CG - Free Report) shares appreciated 2.2% after reporting third-quarter 2021 post-tax distributable earnings of $1.54 per share, which comfortably surpassed the Zacks Consensus Estimate of $1.04. Also, the bottom line increased from 40 cents in the year-ago quarter.
While a rise in revenues on higher fees and assets under management (AUM) growth supported the results, increased expenses created a headwind.
Net income available to common stockholders (GAAP basis) was $523.8 million or $1.46 per share compared with $295.5 million or 82 cents in the prior-year quarter.
Revenues & Expenses Increase
Segment revenues were $1.5 billion, significantly increasing from $496.5 million in the year-ago quarter. The rise primarily resulted from higher fees and investment income. Also, the top line outpaced the Zacks Consensus Estimate of $1 billion.
Fee revenues in the third quarter increased 11.6% year over year to $440.1 million. A rise in fund management fees, and transaction and portfolio advisory fees supported the increase. Realized performance revenues significantly increased to $1 billion.
Total segment expenses amounted to $793.2 million, flaring up from $344.7 million in the prior-year quarter. The increase was primarily due to a rise in employee compensation and benefits expenses.
AUM Climbs
As of Sep 30, 2021, total assets under management (AUM) were a record $293 billion, up 6% from the prior quarter. This was primarily attributed to a robust increase across the company’s carry fund portfolio and strong fundraising activity.
Fee-earning AUM for the reported quarter totaled $176 billion, up marginally from the prior quarter.
Dividend Update
On Oct 28, Carlyle’s board of directors announced a quarterly cash dividend of 25 cents per share. The dividend will be paid out on Nov 17 to shareholders of record as of Nov 9, 2021.
Conclusion
Carlyle put up a decent show in the third quarter in terms of earnings and revenues. Its efforts to expand operations by entering business avenues are encouraging. Also, an increasing AUM balance is likely to continue aiding top-line growth. However, a persistent rise in expenses is expected to deter bottom-line growth.
Carlyle Group Inc. Price, Consensus and EPS Surprise
Carlyle Group Inc. price-consensus-eps-surprise-chart | Carlyle Group Inc. Quote
Currently, Carlyle carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
BancorpSouth Bank delivered net operating earnings of 68 cents per share, beating the Zacks Consensus Estimate of 67 cents. However, the bottom line compares unfavorably with the 69 cents reported in the year-ago quarter.
Bank of Hawaii Corporation (BOH - Free Report) reported third-quarter 2021 earnings per share of $1.52, surpassing the Zacks Consensus Estimate of $1.34. Also, the bottom line compares favorably with the 95 cents reported in the prior-year quarter.
New York Community Bancorp, Inc.’s (NYCB - Free Report) third-quarter 2021 earnings per share (non-GAAP) of 31 cents missed the Zacks Consensus Estimate of 33 cents. Nonetheless, the bottom line rose 35% year over year.