Fortress Investment Group LLC reported second-quarter 2017 pre-tax distributable earnings of 22 cents per share, missing the Zacks Consensus Estimate of 25 cents. Also, the reported figure represents a year-over-year decline of 15.4%.
Results were impacted by a decline in revenues and weak balance sheet position. However, lower expenses and improvement in assets under management (AUM) were the positives.
On a GAAP basis, net income came in at $32 million versus a net loss of $27 million in the prior-year quarter.
Revenues and Expenses Decline
Segment revenues for the quarter came in at $218 million, down 20% year over year. The decline was attributable to lower management fees and incentive income.
Segment expenses declined 18.9% year over year to $133 million. A decline in profit sharing compensation expense was the primary driver.
As of Jun 30, 2017, AUM was $72.4 billion, up nearly 3% sequentially and year over year. Also, the Logan Circle division witnessed net client inflows of nearly $0.7 billion.
Balance Sheet Position
As of Jun 30, 2017, cash and cash equivalents were $341.7 million, down from $397.1 million as of Dec 31, 2016.
As of the same date, debt obligations were $182.8 million, flat compared with the Dec 31, 2016 figure.
Total uncalled capital aggregated $7.5 billion as of Jun 30, 2017, out of which approximately $4.5 billion is available for common investment purposes.
Fortress Investment Group LLC Price, Consensus and EPS Surprise
Currently, Fortress Investment carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Other Investment Management Firms’ Results
BlackRock, Inc. (BLK - Free Report) reported second-quarter 2017 adjusted earnings of $5.24 per share, which lagged the Zacks Consensus Estimate of $5.39. However, the bottom line came in 10% higher than the year-ago quarter.
Federated Investors, Inc. (FII - Free Report) delivered a positive earnings surprise of around 6% for second-quarter 2017, marking the ninth straight quarter of earnings beat. Earnings per share of 53 cents beat the Zacks Consensus Estimate of 50 cents and improved 3.9% year over year.
Ameriprise Financial Inc.’s (AMP - Free Report) second-quarter 2017 operating earnings per share of $2.80 comfortably surpassed the Zacks Consensus Estimate of $2.62. Also, the figure represents a year-over-year increase of 26%.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>