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Carlyle (CG) Stock Falls 7.5% as Q2 Earnings Miss Estimates
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The Carlyle Group Inc. (CG - Free Report) reported second-quarter 2024 post-tax distributable earnings per share of 78 cents, which missed the Zacks Consensus Estimate of 84 cents. The bottom line compared unfavorably with 88 cents reported in the year-ago quarter.
Results were affected due to a decrease in segment fee and realized performance revenues. However, a rise in assets under management (AUM) balance and lower expenses offered some support.
The company’s shares lost 7.5% following the release of its second-quarter 2024 results.
Net income attributable to Carlyle was $148.2 million against a net loss of $98.4 million reported in the previous year's quarter.
Revenues & Expenses Decline
Segmental revenues were $788.9 million in the quarter under review, down 19.3% from the year-ago quarter's level. The top line missed the Zacks Consensus Estimate of $842 million.
Total segment fee revenues were down 3.1% year over year to $587.5 million. A fall in transaction and portfolio advisory fees, as well as fee-related performance revenues, led to the decline.
Realized performance revenues plunged 53.3% to $156.5 million from the prior-year quarter.
Total segmental expenses decreased 24.3% to $445.7 million. The decrease was due to a fall in almost all components of segment expenses, except for depreciation and amortization expense and interest expenses.
Total AUM Rises
As of Jun 30, 2024, total AUM was $434.6 billion, up 13% from the prior-year quarter's figure.
Fee-earning AUM for the reported quarter was $307 billion, up 13% year over year.
Capital Distribution Activities
In the reported quarter, CG repurchased and retired 3.5 million shares of common stock for $178.3 million. As of Jun 30, 2024, $1.1 billion shares remain available under the authorization.
Conclusion
Rising fee-earning AUM and total AUM, along with efforts to expand its investment platforms, are likely to support Carlyle’s revenue growth in the long run. A decline in expenses was another positive. A competitive financial environment, along with the volatile macroeconomic backdrop, is a concern.
Carlyle Group Inc. Price, Consensus and EPS Surprise
BlackRock’s (BLK - Free Report) second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflected a rise of 12% from the year-ago quarter.
BLK’s results benefited from a rise in revenues. AUM witnessed solid improvement driven by net inflows and market appreciation. However, higher expenses and a fall in non-operating income acted as headwinds.
Invesco’s (IVZ - Free Report) second-quarter 2024 adjusted earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 41 cents. The bottom line increased 38.7% from the prior-year quarter.
IVZ’s results have been primarily aided by a decline in adjusted expenses. An increase in the AUM balance on decent inflows was a positive. However, marginally lower adjusted revenues hurt results to some extent.
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Carlyle (CG) Stock Falls 7.5% as Q2 Earnings Miss Estimates
The Carlyle Group Inc. (CG - Free Report) reported second-quarter 2024 post-tax distributable earnings per share of 78 cents, which missed the Zacks Consensus Estimate of 84 cents. The bottom line compared unfavorably with 88 cents reported in the year-ago quarter.
Results were affected due to a decrease in segment fee and realized performance revenues. However, a rise in assets under management (AUM) balance and lower expenses offered some support.
The company’s shares lost 7.5% following the release of its second-quarter 2024 results.
Net income attributable to Carlyle was $148.2 million against a net loss of $98.4 million reported in the previous year's quarter.
Revenues & Expenses Decline
Segmental revenues were $788.9 million in the quarter under review, down 19.3% from the year-ago quarter's level. The top line missed the Zacks Consensus Estimate of $842 million.
Total segment fee revenues were down 3.1% year over year to $587.5 million. A fall in transaction and portfolio advisory fees, as well as fee-related performance revenues, led to the decline.
Realized performance revenues plunged 53.3% to $156.5 million from the prior-year quarter.
Total segmental expenses decreased 24.3% to $445.7 million. The decrease was due to a fall in almost all components of segment expenses, except for depreciation and amortization expense and interest expenses.
Total AUM Rises
As of Jun 30, 2024, total AUM was $434.6 billion, up 13% from the prior-year quarter's figure.
Fee-earning AUM for the reported quarter was $307 billion, up 13% year over year.
Capital Distribution Activities
In the reported quarter, CG repurchased and retired 3.5 million shares of common stock for $178.3 million. As of Jun 30, 2024, $1.1 billion shares remain available under the authorization.
Conclusion
Rising fee-earning AUM and total AUM, along with efforts to expand its investment platforms, are likely to support Carlyle’s revenue growth in the long run. A decline in expenses was another positive. A competitive financial environment, along with the volatile macroeconomic backdrop, is a concern.
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 Other Asset Managers
BlackRock’s (BLK - Free Report) second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflected a rise of 12% from the year-ago quarter.
BLK’s results benefited from a rise in revenues. AUM witnessed solid improvement driven by net inflows and market appreciation. However, higher expenses and a fall in non-operating income acted as headwinds.
Invesco’s (IVZ - Free Report) second-quarter 2024 adjusted earnings of 43 cents per share surpassed the Zacks Consensus Estimate of 41 cents. The bottom line increased 38.7% from the prior-year quarter.
IVZ’s results have been primarily aided by a decline in adjusted expenses. An increase in the AUM balance on decent inflows was a positive. However, marginally lower adjusted revenues hurt results to some extent.