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Why Is Carlyle (CG) Up 2.2% Since Last Earnings Report?
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It has been about a month since the last earnings report for Carlyle Group (CG - Free Report) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carlyle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Carlyle’s Q2 Earnings & Revenue Beat Estimates
Carlyle reported post-tax distributable earnings per share of 88 cents, surpassing the Zacks Consensus Estimate of 65 cents. However, the bottom line declined from $1.17 in the year-ago quarter.
An increase in AUM balance and fee revenues as well as reduced expenses supported the results. However, a decrease in realized performance revenues was a major headwind.
Net loss attributable to common stockholders (GAAP basis) was $98.4 million against an income of $245.4 million in the prior-year quarter.
Revenues & Expenses Fall
Segmental revenues were $977.9 million in the quarter under review, decreasing 15.8% from the year-ago quarter. Nonetheless, the top line outshined the Zacks Consensus Estimate of $809.1 million.
Total segmental fee revenues increased 2.2% year over year to $606.4 million. A rise in fee related performance revenues primarily resulted in the uptick.
Realized performance revenues plunged 35.5% to $335.1 million. Our estimate for the metric was $289.3 million.
Total segmental expenses came in at $589.1 million, down 6.8% year over year. The decline primarily resulted from decreased realized performance revenues related compensation.
AUM Increases
As of Jun 30, 2023, total AUM was $384.79 billion, up 1% from the prior quarter. We expected the metric to be $406.08 billion, but substantially lower income from foreign exchange rate fluctuations led the company to post a decreased number.
Fee-earning AUM for the reported quarter was $271.4 billion, up marginally on a sequential basis. We anticipated the metric to be $289.11 billion but the inflows were worse than our projections, leading Carlyle to post a lower number.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Carlyle has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Carlyle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Carlyle (CG) Up 2.2% Since Last Earnings Report?
It has been about a month since the last earnings report for Carlyle Group (CG - Free Report) . Shares have added about 2.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Carlyle due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
Carlyle’s Q2 Earnings & Revenue Beat Estimates
Carlyle reported post-tax distributable earnings per share of 88 cents, surpassing the Zacks Consensus Estimate of 65 cents. However, the bottom line declined from $1.17 in the year-ago quarter.
An increase in AUM balance and fee revenues as well as reduced expenses supported the results. However, a decrease in realized performance revenues was a major headwind.
Net loss attributable to common stockholders (GAAP basis) was $98.4 million against an income of $245.4 million in the prior-year quarter.
Revenues & Expenses Fall
Segmental revenues were $977.9 million in the quarter under review, decreasing 15.8% from the year-ago quarter. Nonetheless, the top line outshined the Zacks Consensus Estimate of $809.1 million.
Total segmental fee revenues increased 2.2% year over year to $606.4 million. A rise in fee related performance revenues primarily resulted in the uptick.
Realized performance revenues plunged 35.5% to $335.1 million. Our estimate for the metric was $289.3 million.
Total segmental expenses came in at $589.1 million, down 6.8% year over year. The decline primarily resulted from decreased realized performance revenues related compensation.
AUM Increases
As of Jun 30, 2023, total AUM was $384.79 billion, up 1% from the prior quarter. We expected the metric to be $406.08 billion, but substantially lower income from foreign exchange rate fluctuations led the company to post a decreased number.
Fee-earning AUM for the reported quarter was $271.4 billion, up marginally on a sequential basis. We anticipated the metric to be $289.11 billion but the inflows were worse than our projections, leading Carlyle to post a lower number.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
VGM Scores
At this time, Carlyle has a poor Growth Score of F, however its Momentum Score is doing a lot better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Carlyle has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.