The Carlyle Group Inc. CG reported third-quarter 2024 post-tax distributable earnings per share of 95 cents, which beat the Zacks Consensus Estimate by 9.2%. The figure compared favorably with earnings of 87 cents per share reported in the year-ago quarter.
Find the latest earnings estimates and surprises on the Zacks Earnings Calendar.
Results benefited from an increase in segment fee and realized performance revenues. A rise in assets under management (AUM) balance also offered support. However, an increase in expenses was a headwind.
Net income attributable to Carlyle was $595.7 million compared with $81.3 million reported a year ago.
Carlyle’s Revenues & Expenses Increase
Segmental revenues were $895 million, up 15.2% from the year-ago quarter's level. The top line topped the Zacks Consensus Estimate by 1%.
Total segment fee revenues were up 6.8% year over year to $590.2 million. An increase in transaction and portfolio advisory fees, as well as fee-related performance revenues, led to the increase.
Realized performance revenues surged 52.9% from the year-ago quarter to $275.9 million.
Total segmental expenses increased 29% to $527.9 million. The increase was due to a rise in almost all components of segment expenses, except for depreciation and amortization expense and interest expenses.
Carlyle’s Total AUM Rises
As of Sept. 30, 2024, total AUM was $447.4 billion, up 17% from the prior-year quarter's figure.
Fee-earning AUM was $313.6 billion, up 14.9% year over year.
Carlyle’s Capital Distribution Activities
In the reported quarter, CG repurchased and retired 1.7 million shares of common stock for $150.5 million. As of Sept. 30, 2024, $0.9 billion worth of shares remained available under the authorization.
Our View on Carlyle
Rising fee-earning AUM and total AUM, along with efforts to expand its investment platforms, will likely support Carlyle’s revenue growth in the long run. However, the rise in expenses is another headwind. 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
CG currently 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
Lazard Inc.’s LAZ third-quarter 2024 adjusted earnings per share of 38 cents missed the Zacks Consensus Estimate of 41 cents. The figure compared favorably with earnings of 10 cents per share in the year-ago quarter.
LAZ’s results were negatively impacted due to a rise in expenses and weak performance in the corporate segment. Nonetheless, an increase in revenues in the financial advisory and asset management segment, along with a rise in AUM balances, offered support.
Invesco’s IVZ third-quarter 2024 adjusted earnings of 44 cents per share were line with the Zacks Consensus Estimate. The bottom line increased 25.7% from the prior-year level.
IVZ’s results were primarily aided by a decline in adjusted expenses and higher adjusted net revenues. An increase in the AUM balance on decent inflows was a positive too.
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