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Key Factors Setting the Stage for Carlyle's (CG) Q4 Earnings
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The Carlyle Group Inc. (CG - Free Report) is scheduled to report fourth-quarter and 2021 results on Feb 3, 2022, before the opening bell. The company’s results are expected to reflect year-over-year growth in earnings and revenues.
In the last reported quarter, the global investment firm reported 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.
Over the trailing four quarters, Carlyle surpassed the Zacks Consensus Estimate on all occasions. It has an earnings surprise of 36.3%, on average, for the said period. The graph below depicts the surprise history:
Solid business prospects and activities of the company in the fourth quarter won analysts’ confidence. As a result, the Zacks Consensus Estimate for its fourth-quarter earnings of $1.22 per share has been revised 7% upward over the past 30 days. The figure indicates a rise of 90.6% from the prior-year quarter’s reported number.
The consensus estimate for revenues is pegged at $1.14 billion, which suggests an increase of 81.3% from the year-ago quarter’s reported figure.
Unlike 2020 and the first few months of 2021, the fourth quarter did not record a significant rise in market volatility. Despite relatively lower volatility and market normalization, client activity was decent. Higher transaction and portfolio advisory activities are expected to have driven fund management fees.
Moreover, a focus on expanding the scale of investment platforms, foraying into new avenues such as insurance and capital markets, and institutionalizing the firm to drive higher incremental margins are expected to have buoyed the fourth-quarter performance.
The company executed fundraising a number of flagship funds. The quarter witnessed overall asset inflows, which is expected to have aided CG’s AUM growth.
The Zacks Consensus Estimate for Carlyle’sfourth-quarter AUM is pegged at $307.4 billion, which indicates a rise of 4.9% from the previous quarter’s reported figure. Also, the consensus estimate for a total fee-earning AUM of $187 billion suggests a sequential rise of 6.1%.
The Zacks Consensus Estimate for fee revenue for the to-be-reported quarter is pegged at $462 million, which indicates a 5% rise from the prior quarter. This is expected to have been supported by higher fund management fees.
However, Carlyle has been witnessing a persistent rise in expenses over the past few years. This was primarily due to higher compensation expenses, along with general and administrative (G&A) and other expenses.As the company has continued to make investments in franchise, expenses are expected to have risen to some extent in the fourth quarter.
Earnings Whispers
Our proven model shows that Carlyle is likely to beat estimates this quarter. This is because a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Carlyle’s Earnings ESP is +1.49%.
Zacks Rank: The company currently carries a Zacks Rank of 3.
A couple of other finance stocks, which you may want to consider as these too have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Franklin Resources (BEN - Free Report) and Ares Capital Corporation (ARCC - Free Report) .
The Earnings ESP for Franklin is +0.11% and it carries a Zacks Rank of 3 at present. BEN is scheduled to report quarterly numbers on Feb 1.
Ares Capital is slated to report quarterly results on Feb 9. ARCC currently has an Earnings ESP of +11.11% and a Zacks Rank #2.
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Key Factors Setting the Stage for Carlyle's (CG) Q4 Earnings
The Carlyle Group Inc. (CG - Free Report) is scheduled to report fourth-quarter and 2021 results on Feb 3, 2022, before the opening bell. The company’s results are expected to reflect year-over-year growth in earnings and revenues.
In the last reported quarter, the global investment firm reported 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.
Over the trailing four quarters, Carlyle surpassed the Zacks Consensus Estimate on all occasions. It has an earnings surprise of 36.3%, on average, for the said period. The graph below depicts the surprise history:
Carlyle Group Inc. Price and EPS Surprise
Carlyle Group Inc. price-eps-surprise | Carlyle Group Inc. Quote
Solid business prospects and activities of the company in the fourth quarter won analysts’ confidence. As a result, the Zacks Consensus Estimate for its fourth-quarter earnings of $1.22 per share has been revised 7% upward over the past 30 days. The figure indicates a rise of 90.6% from the prior-year quarter’s reported number.
The consensus estimate for revenues is pegged at $1.14 billion, which suggests an increase of 81.3% from the year-ago quarter’s reported figure.
Let’s see how things have shaped up prior to the fourth-quarter earnings announcement.
Unlike 2020 and the first few months of 2021, the fourth quarter did not record a significant rise in market volatility. Despite relatively lower volatility and market normalization, client activity was decent. Higher transaction and portfolio advisory activities are expected to have driven fund management fees.
Moreover, a focus on expanding the scale of investment platforms, foraying into new avenues such as insurance and capital markets, and institutionalizing the firm to drive higher incremental margins are expected to have buoyed the fourth-quarter performance.
The company executed fundraising a number of flagship funds. The quarter witnessed overall asset inflows, which is expected to have aided CG’s AUM growth.
The Zacks Consensus Estimate for Carlyle’sfourth-quarter AUM is pegged at $307.4 billion, which indicates a rise of 4.9% from the previous quarter’s reported figure. Also, the consensus estimate for a total fee-earning AUM of $187 billion suggests a sequential rise of 6.1%.
The Zacks Consensus Estimate for fee revenue for the to-be-reported quarter is pegged at $462 million, which indicates a 5% rise from the prior quarter. This is expected to have been supported by higher fund management fees.
However, Carlyle has been witnessing a persistent rise in expenses over the past few years. This was primarily due to higher compensation expenses, along with general and administrative (G&A) and other expenses.As the company has continued to make investments in franchise, expenses are expected to have risen to some extent in the fourth quarter.
Earnings Whispers
Our proven model shows that Carlyle is likely to beat estimates this quarter. This is because a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or at least 3 (Hold) for this to happen.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Carlyle’s Earnings ESP is +1.49%.
Zacks Rank: The company currently carries a Zacks Rank of 3.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks That Warrant a Look
A couple of other finance stocks, which you may want to consider as these too have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Franklin Resources (BEN - Free Report) and Ares Capital Corporation (ARCC - Free Report) .
The Earnings ESP for Franklin is +0.11% and it carries a Zacks Rank of 3 at present. BEN is scheduled to report quarterly numbers on Feb 1.
Ares Capital is slated to report quarterly results on Feb 9. ARCC currently has an Earnings ESP of +11.11% and a Zacks Rank #2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.