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Carlyle (CG) Stock Dips on Q1 Earnings & Revenue Miss, AUM Up
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TheCarlyle Group Inc. (CG - Free Report) reported first-quarter 2022 post-tax distributable earnings of 74 cents per share, which missed the Zacks Consensus Estimate of 98 cents. Also, the bottom line increased substantially from 58 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 major headwind. This likely led to a marginal decline in shares.
Net income available to common stockholders was $571.6 million compared with $869.3 million in the prior-year quarter.
Revenues & Expenses Increase
Segmental revenues were $779.5 million, increasing 27.3% from the year-ago quarter. The rise primarily resulted from higher fees and realized performance revenues. The top line missed the Zacks Consensus Estimate of $978.1 million.
Fee revenues in the first quarter increased 25% year over year to $514.9 million. A rise in fund management fees supported the increase, while lower transaction and portfolio advisory fees were offsetting factors. Realized performance revenues significantly increased to $199.9 million from the prior-year quarter’s $134.1 million.
Total segment expenses amounted to $476.7 million, flaring up from $397.6 million in the prior-year quarter. The increase was primarily due to a rise in total compensation and benefits expenses, as well as general, administrative and other expenses.
AUM Climbs
As of Mar 31, 2022, total AUM were $325 billion, up 8% from the prior quarter. This was primarily attributed to an increase in AUM acquired from the CBAM buyout, appreciation across the carry fund portfolio and fundraising activity.
Fee-earning AUM for the reported quarter totaled $211 billion, up 9.1% from the prior quarter.
Dividend Update
Carlyle’s board of directors announced a quarterly cash dividend of 32.5 cents per share. The dividend will be paid out on May 17 to shareholders of record as of May 10, 2022.
Conclusion
Carlyle put up a disappointing show in the first quarter in terms of earnings and revenues. Nonetheless, efforts to expand operations by entering business avenues are encouraging. Also, an increase in the AUM balance and fund management fees is likely to support its organic growth. However, a persistent rise in expenses is expected to deter bottom-line expansion.
Carlyle Group Inc. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2022 adjusted earnings of $9.52 per share outpaced the Zacks Consensus Estimate of $8.92. The figure reflects a rise of 18.4% from the year-ago quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in the AUM balance.
Invesco’s (IVZ - Free Report) first-quarter 2022 adjusted earnings of 56 cents per share missed the Zacks Consensus Estimate of 61 cents. The bottom line declined 17.6% from the prior-year quarter.
Results were adversely impacted by a rise in operating expenses. However, improvement in revenues and solid growth in the AUM balance acted as tailwinds.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2022 earnings of $1.36 per share were in line with the Zacks Consensus Estimate. The bottom line reflects a 53% jump from the prior-year quarter. The reported quarter comprised a one-time early termination fee of $88 million or 47 cents per share, which was included in information processing and software servicing fees.
SEIC’s Results were aided by revenue growth and an increase in the AUM balance. These were offset by a rise in expenses.
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Carlyle (CG) Stock Dips on Q1 Earnings & Revenue Miss, AUM Up
The Carlyle Group Inc. (CG - Free Report) reported first-quarter 2022 post-tax distributable earnings of 74 cents per share, which missed the Zacks Consensus Estimate of 98 cents. Also, the bottom line increased substantially from 58 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 major headwind. This likely led to a marginal decline in shares.
Net income available to common stockholders was $571.6 million compared with $869.3 million in the prior-year quarter.
Revenues & Expenses Increase
Segmental revenues were $779.5 million, increasing 27.3% from the year-ago quarter. The rise primarily resulted from higher fees and realized performance revenues. The top line missed the Zacks Consensus Estimate of $978.1 million.
Fee revenues in the first quarter increased 25% year over year to $514.9 million. A rise in fund management fees supported the increase, while lower transaction and portfolio advisory fees were offsetting factors. Realized performance revenues significantly increased to $199.9 million from the prior-year quarter’s $134.1 million.
Total segment expenses amounted to $476.7 million, flaring up from $397.6 million in the prior-year quarter. The increase was primarily due to a rise in total compensation and benefits expenses, as well as general, administrative and other expenses.
AUM Climbs
As of Mar 31, 2022, total AUM were $325 billion, up 8% from the prior quarter. This was primarily attributed to an increase in AUM acquired from the CBAM buyout, appreciation across the carry fund portfolio and fundraising activity.
Fee-earning AUM for the reported quarter totaled $211 billion, up 9.1% from the prior quarter.
Dividend Update
Carlyle’s board of directors announced a quarterly cash dividend of 32.5 cents per share. The dividend will be paid out on May 17 to shareholders of record as of May 10, 2022.
Conclusion
Carlyle put up a disappointing show in the first quarter in terms of earnings and revenues. Nonetheless, efforts to expand operations by entering business avenues are encouraging. Also, an increase in the AUM balance and fund management fees is likely to support its organic growth. However, a persistent rise in expenses is expected to deter bottom-line expansion.
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 #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Finance Stocks
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2022 adjusted earnings of $9.52 per share outpaced the Zacks Consensus Estimate of $8.92. The figure reflects a rise of 18.4% from the year-ago quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in the AUM balance.
Invesco’s (IVZ - Free Report) first-quarter 2022 adjusted earnings of 56 cents per share missed the Zacks Consensus Estimate of 61 cents. The bottom line declined 17.6% from the prior-year quarter.
Results were adversely impacted by a rise in operating expenses. However, improvement in revenues and solid growth in the AUM balance acted as tailwinds.
SEI Investments Co.’s (SEIC - Free Report) first-quarter 2022 earnings of $1.36 per share were in line with the Zacks Consensus Estimate. The bottom line reflects a 53% jump from the prior-year quarter. The reported quarter comprised a one-time early termination fee of $88 million or 47 cents per share, which was included in information processing and software servicing fees.
SEIC’s Results were aided by revenue growth and an increase in the AUM balance. These were offset by a rise in expenses.