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Carlyle (CG) Soars 9.5% on Q2 Earnings Beat, Sees Record AUM
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Shares of TheCarlyle Group Inc. (CG - Free Report) have gained 9.5% since the announcement of its second-quarter results. The company reported second-quarter 2022 post-tax distributable earnings per share of $1.17, which outpaced the Zacks Consensus Estimate of $1.11. Also, the bottom line increased substantially from 88 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.
Net income attributable to Carlyle was $245.4 million compared with $925 million in the prior-year quarter.
Revenues & Expenses Increase
Segmental revenues were $1.16 million, increasing 26.4% from the year-ago quarter. However, the top line missed the Zacks Consensus Estimate of $1.17 million.
Fee revenues in the second quarter increased 39.5% year over year to $593.5 million. A rise in fund management fees, net transaction and portfolio advisory fees, as well as fee-related performance revenues, supported the increase. Realized performance revenues increased 14.5% to $519.9 million.
Total segmental expenses amounted to $632.4 million, up 20.8% from 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 Jun 30, 2022, total AUM were a record $376 billion, up 16% from the prior quarter. This was primarily attributed to an increase in AUM from the new strategic advisory services agreement with Fortitude, appreciation across its carry fund portfolio and fundraising activity.
Fee-earning AUM for the reported quarter totaled a record $260 billion, up 23% 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 Aug 9 to shareholders of record as of Aug 16, 2022.
Conclusion
Carlyle put up a decent show in the second quarter in terms of earnings and revenues. Also, efforts to expand operations by entering business avenues are encouraging. 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 growth.
Carlyle Group Inc. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) second-quarter 2022 adjusted earnings of $7.36 per share missed the Zacks Consensus Estimate of $8.33. The figure reflects a decrease of 30% from the year-ago quarter.
BLK’s results were adversely impacted by an unfavorable operating backdrop, leading to lower revenues and AUM balance. A modest decline in expenses was a tailwind.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2022 earnings of 81 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line reflected a decline of 12.9% from the prior-year quarter.
SEIC’s results were hurt by a rise in expenses. However, growth in revenues and an increase in the AUM balance were tailwinds.
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Carlyle (CG) Soars 9.5% on Q2 Earnings Beat, Sees Record AUM
Shares of The Carlyle Group Inc. (CG - Free Report) have gained 9.5% since the announcement of its second-quarter results. The company reported second-quarter 2022 post-tax distributable earnings per share of $1.17, which outpaced the Zacks Consensus Estimate of $1.11. Also, the bottom line increased substantially from 88 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.
Net income attributable to Carlyle was $245.4 million compared with $925 million in the prior-year quarter.
Revenues & Expenses Increase
Segmental revenues were $1.16 million, increasing 26.4% from the year-ago quarter. However, the top line missed the Zacks Consensus Estimate of $1.17 million.
Fee revenues in the second quarter increased 39.5% year over year to $593.5 million. A rise in fund management fees, net transaction and portfolio advisory fees, as well as fee-related performance revenues, supported the increase. Realized performance revenues increased 14.5% to $519.9 million.
Total segmental expenses amounted to $632.4 million, up 20.8% from 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 Jun 30, 2022, total AUM were a record $376 billion, up 16% from the prior quarter. This was primarily attributed to an increase in AUM from the new strategic advisory services agreement with Fortitude, appreciation across its carry fund portfolio and fundraising activity.
Fee-earning AUM for the reported quarter totaled a record $260 billion, up 23% 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 Aug 9 to shareholders of record as of Aug 16, 2022.
Conclusion
Carlyle put up a decent show in the second quarter in terms of earnings and revenues. Also, efforts to expand operations by entering business avenues are encouraging. 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 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 #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) second-quarter 2022 adjusted earnings of $7.36 per share missed the Zacks Consensus Estimate of $8.33. The figure reflects a decrease of 30% from the year-ago quarter.
BLK’s results were adversely impacted by an unfavorable operating backdrop, leading to lower revenues and AUM balance. A modest decline in expenses was a tailwind.
SEI Investments Co.’s (SEIC - Free Report) second-quarter 2022 earnings of 81 cents per share lagged the Zacks Consensus Estimate by a penny. The bottom line reflected a decline of 12.9% from the prior-year quarter.
SEIC’s results were hurt by a rise in expenses. However, growth in revenues and an increase in the AUM balance were tailwinds.