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The Carlyle Group Inc. (CG - Free Report) reported first-quarter 2024 post-tax distributable earnings per share of $1.01, which surpassed the Zacks Consensus Estimate of 92 cents. The bottom line compared favorably with 63 cents reported in the year-ago quarter.
Results benefited from an increase in segment fee revenues. Further, a rise in assets under management (AUM) balance and realized performance revenues acted as tailwinds. However, higher expenses were an undermining factor.
The company’s shares lost 8.6% following the release of its first-quarter 2024 results.
Net income attributable to Carlyle was $65.5 million, down 34.9% from the prior-year quarter.
Revenues & Expenses Rise
Segmental revenues were $1.02 billion in the quarter under review, which jumped 35.6% from the year-ago quarter's level. The top line missed the Zacks Consensus Estimate of $1.03 billion.
Total segment fee revenues grew 3.6% year over year to $571.4 million. A rise in fund management fees, transaction and portfolio advisory fees, as well as fee related performance revenues, drove the increase. We had projected the metric to be $651.5 million.
Realized performance revenues improved significantly to $397.8 million from $165.1 million reported in the prior-year quarter. Our estimate for the metric was pegged at $258.5 million.
Total segmental expenses climbed 22.6% to $591.7 million. The increase was due to a rise in total compensation and benefits. Our estimate for the metric was pinned at $569 million.
Total AUM Rises
As of Mar 31, 2024, total AUM was $425.5 billion, up 12% from the prior-year quarter's figure. We had expected the metric to be $442.8 billion.
Fee-earning AUM for the reported quarter was $304 billion, up 12% year over year. We had anticipated the metric to be $317.2 billion.
Capital Distribution Activities
In the reported quarter, CG repurchased and retired 2.9 million shares of common stock for $150 million. As of Mar 31, 2024, more than $1.2 billion shares remain available under the authorization.
Conclusion
Carlyle’s rising fee-earning AUM and total AUM, along with efforts to expand its investment platforms, should drive revenue growth. However, CG’s rising cost base and a challenging operating environment are near-term headwinds.
Carlyle Group Inc. Price, Consensus and EPS Surprise
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2024 adjusted earnings of $9.81 per share surpassed the Zacks Consensus Estimate of $9.42. The figure jumped 24% from the year-ago quarter's level.
BLK’s results benefited from a rise in revenues and higher non-operating income. Further, AUM balance witnessed an improvement, driven by net inflows. However, higher expenses acted as a dampener.
Invesco Ltd’s (IVZ - Free Report) first-quarter 2024 adjusted earnings of 33 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line declined 13.2% from the prior-year quarter's level.
IVZ’s results were primarily hurt by a decline in adjusted revenues, along with higher adjusted expenses. However, an increase in AUM balance on decent inflows was a positive.
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Carlyle (CG) Q1 Earnings Beat Estimates, Stock Falls 8.6%
The Carlyle Group Inc. (CG - Free Report) reported first-quarter 2024 post-tax distributable earnings per share of $1.01, which surpassed the Zacks Consensus Estimate of 92 cents. The bottom line compared favorably with 63 cents reported in the year-ago quarter.
Results benefited from an increase in segment fee revenues. Further, a rise in assets under management (AUM) balance and realized performance revenues acted as tailwinds. However, higher expenses were an undermining factor.
The company’s shares lost 8.6% following the release of its first-quarter 2024 results.
Net income attributable to Carlyle was $65.5 million, down 34.9% from the prior-year quarter.
Revenues & Expenses Rise
Segmental revenues were $1.02 billion in the quarter under review, which jumped 35.6% from the year-ago quarter's level. The top line missed the Zacks Consensus Estimate of $1.03 billion.
Total segment fee revenues grew 3.6% year over year to $571.4 million. A rise in fund management fees, transaction and portfolio advisory fees, as well as fee related performance revenues, drove the increase. We had projected the metric to be $651.5 million.
Realized performance revenues improved significantly to $397.8 million from $165.1 million reported in the prior-year quarter. Our estimate for the metric was pegged at $258.5 million.
Total segmental expenses climbed 22.6% to $591.7 million. The increase was due to a rise in total compensation and benefits. Our estimate for the metric was pinned at $569 million.
Total AUM Rises
As of Mar 31, 2024, total AUM was $425.5 billion, up 12% from the prior-year quarter's figure. We had expected the metric to be $442.8 billion.
Fee-earning AUM for the reported quarter was $304 billion, up 12% year over year. We had anticipated the metric to be $317.2 billion.
Capital Distribution Activities
In the reported quarter, CG repurchased and retired 2.9 million shares of common stock for $150 million. As of Mar 31, 2024, more than $1.2 billion shares remain available under the authorization.
Conclusion
Carlyle’s rising fee-earning AUM and total AUM, along with efforts to expand its investment platforms, should drive revenue growth. However, CG’s rising cost base and a challenging operating environment are near-term headwinds.
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 #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2024 adjusted earnings of $9.81 per share surpassed the Zacks Consensus Estimate of $9.42. The figure jumped 24% from the year-ago quarter's level.
BLK’s results benefited from a rise in revenues and higher non-operating income. Further, AUM balance witnessed an improvement, driven by net inflows. However, higher expenses acted as a dampener.
Invesco Ltd’s (IVZ - Free Report) first-quarter 2024 adjusted earnings of 33 cents per share lagged the Zacks Consensus Estimate of 40 cents. The bottom line declined 13.2% from the prior-year quarter's level.
IVZ’s results were primarily hurt by a decline in adjusted revenues, along with higher adjusted expenses. However, an increase in AUM balance on decent inflows was a positive.