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Carlyle (CG) Stock Gains 1.5% as Q3 Earnings Beat Estimates
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The Carlyle Group Inc.’s (CG - Free Report) shares have gained 1.5%, backed by the better-than-expected third-quarter 2023 results. CG reported post-tax distributable earnings per share of 87 cents, surpassing the Zacks Consensus Estimate of 72 cents. However, the bottom line declined from $1.42 in the year-ago quarter.
An increase in fee revenues and reduced expenses supported the results. However, a decrease in realized performance revenues and the assets under management (AUM) balance were major headwinds.
Net income attributable to Carlyle was $81.3 million compared with $280.8 million in the prior-year quarter.
Revenues & Expenses Fall
Segmental revenues were $776.6 million in the quarter under review, decreasing 44.6% from the year-ago quarter. Also, the top line missed the Zacks Consensus Estimate of $825.5 million.
Total segment fee revenues fell 3% year over year to $552.7 million. A decline in net transaction and portfolio advisory fees resulted in the fall.
Realized performance revenues plunged 76.4% to $180.4 million. Our estimate for the metric was $277.8 million.
Total segmental expenses amounted to $409.2 million, down 46% year over year. The decline primarily resulted from decreased compensation and benefits expenses. Our estimate for the metric was $496 million.
Total AUM Down
As of Sep 30, 2023, total AUM was $382.2 billion, down marginally from the prior quarter. We had expected the metric to be $388.6 billion.
Fee-earning AUM for the reported quarter was $273 billion, up 1% on a sequential basis. We had anticipated the metric to be $272.7 billion.
Dividend Update
On Nov 7, Carlyle’s board of directors announced a quarterly cash dividend of 35 cents per share. This will be paid out on Nov 21 to shareholders of record as of Nov 29.
Conclusion
Carlyle’s efforts to scale investment platforms and expand operations in the real-estate credit space are likely to stoke top-line growth. Going ahead, any increase in the AUM balance and fund management fees is likely to support its organic growth. However, a challenging operating environment is a near-term headwind.
Carlyle Group Inc. Price, Consensus and EPS Surprise
Ameriprise Financial’s (AMP - Free Report) third-quarter 2023 adjusted operating earnings (excluding unlocking) of $7.68 per share handily surpassed the Zacks Consensus Estimate of $7.58. The bottom line reflects a rise of 21% from the year-ago quarter.
Results were aided by revenue growth, along with higher AUM and assets under administration balances. However, an increase in expenses was concerning.
SEI Investments Co.’s (SEIC - Free Report) third-quarter 2023 earnings of 87 cents per share met the Zacks Consensus Estimate. The bottom line reflects a rise of 93% from the prior-year quarter.
Results benefited from higher revenues and an increase in the AUM balance. Lower expenses acted as another tailwind.
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Carlyle (CG) Stock Gains 1.5% as Q3 Earnings Beat Estimates
The Carlyle Group Inc.’s (CG - Free Report) shares have gained 1.5%, backed by the better-than-expected third-quarter 2023 results. CG reported post-tax distributable earnings per share of 87 cents, surpassing the Zacks Consensus Estimate of 72 cents. However, the bottom line declined from $1.42 in the year-ago quarter.
An increase in fee revenues and reduced expenses supported the results. However, a decrease in realized performance revenues and the assets under management (AUM) balance were major headwinds.
Net income attributable to Carlyle was $81.3 million compared with $280.8 million in the prior-year quarter.
Revenues & Expenses Fall
Segmental revenues were $776.6 million in the quarter under review, decreasing 44.6% from the year-ago quarter. Also, the top line missed the Zacks Consensus Estimate of $825.5 million.
Total segment fee revenues fell 3% year over year to $552.7 million. A decline in net transaction and portfolio advisory fees resulted in the fall.
Realized performance revenues plunged 76.4% to $180.4 million. Our estimate for the metric was $277.8 million.
Total segmental expenses amounted to $409.2 million, down 46% year over year. The decline primarily resulted from decreased compensation and benefits expenses. Our estimate for the metric was $496 million.
Total AUM Down
As of Sep 30, 2023, total AUM was $382.2 billion, down marginally from the prior quarter. We had expected the metric to be $388.6 billion.
Fee-earning AUM for the reported quarter was $273 billion, up 1% on a sequential basis. We had anticipated the metric to be $272.7 billion.
Dividend Update
On Nov 7, Carlyle’s board of directors announced a quarterly cash dividend of 35 cents per share. This will be paid out on Nov 21 to shareholders of record as of Nov 29.
Conclusion
Carlyle’s efforts to scale investment platforms and expand operations in the real-estate credit space are likely to stoke top-line growth. Going ahead, any increase in the AUM balance and fund management fees is likely to support its organic growth. However, a challenging operating environment is a near-term headwind.
Carlyle Group Inc. Price, Consensus and EPS Surprise
Carlyle Group Inc. price-consensus-eps-surprise-chart | Carlyle Group Inc. Quote
Currently, CG carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Some Asset Managers
Ameriprise Financial’s (AMP - Free Report) third-quarter 2023 adjusted operating earnings (excluding unlocking) of $7.68 per share handily surpassed the Zacks Consensus Estimate of $7.58. The bottom line reflects a rise of 21% from the year-ago quarter.
Results were aided by revenue growth, along with higher AUM and assets under administration balances. However, an increase in expenses was concerning.
SEI Investments Co.’s (SEIC - Free Report) third-quarter 2023 earnings of 87 cents per share met the Zacks Consensus Estimate. The bottom line reflects a rise of 93% from the prior-year quarter.
Results benefited from higher revenues and an increase in the AUM balance. Lower expenses acted as another tailwind.