U.S. markets open in 11 minutes
  • S&P Futures

    4,241.00
    +4.75 (+0.11%)
     
  • Dow Futures

    33,897.00
    +62.00 (+0.18%)
     
  • Nasdaq Futures

    14,267.50
    +9.25 (+0.06%)
     
  • Russell 2000 Futures

    2,294.20
    +1.70 (+0.07%)
     
  • Crude Oil

    73.66
    +0.81 (+1.11%)
     
  • Gold

    1,783.10
    +5.70 (+0.32%)
     
  • Silver

    25.98
    +0.12 (+0.46%)
     
  • EUR/USD

    1.1957
    +0.0014 (+0.12%)
     
  • 10-Yr Bond

    1.4820
    +0.0100 (+0.68%)
     
  • Vix

    16.35
    -1.54 (-8.61%)
     
  • GBP/USD

    1.3986
    +0.0038 (+0.28%)
     
  • USD/JPY

    110.8800
    +0.2450 (+0.22%)
     
  • BTC-USD

    34,016.28
    +2,401.55 (+7.60%)
     
  • CMC Crypto 200

    813.96
    +19.63 (+2.47%)
     
  • FTSE 100

    7,123.97
    +33.96 (+0.48%)
     
  • Nikkei 225

    28,874.89
    -9.24 (-0.03%)
     

Carlyle (CG) Q4 Earnings Beat Estimates, Stock Gains 7.1%

  • Oops!
    Something went wrong.
    Please try again later.
·4 min read
  • Oops!
    Something went wrong.
    Please try again later.

The Carlyle Group CG reported fourth-quarter 2020 post-tax distributable earnings of 64 cents per share, which surpassed the Zacks Consensus Estimate of 44 cents. Also, the bottom line was 36.2% higher than the year-ago quarter figure.

Results exclude unrealized performance allocations and related compensation expense, unrealized principal investment income, equity-based compensation expense and charges related to non-recurring items.

Lower expenses and higher AUM were tailwinds. Also, rise in revenues on higher fees supported the results. These factors seem to have led to bullish investor sentiments as the company’s shares rallied more than 7% following the earnings release.

Net income available to common stockholders (GAAP basis) was $518.8 million or $1.44 per share against net loss of $8.3 million or 8 cents per share in the prior-year quarter.

In 2020, the company reported net income of $348.2 million or 97 cents compared with $345.3 million or $2.82 in 2019. The bottom line lagged the Zacks Consensus Estimate of $1.86.

Revenues Increase, Expenses Decline

In 2020, Carlyle reported segment revenues of $2.3 billion compared with $2.1 billion in the prior year. The Zacks Consensus Estimate was pegged at $2.2 billion.

Segment revenues in the fourth quarter came in at $629.7 million, up 8.4% from the year-ago quarter. The rise primarily resulted from higher fees and performance revenues. Also, the top line beat the Zacks Consensus Estimate of $561.6 million.

Total expenses amounted to $392.8 million, down 4% year over year. The decrease was largely due to fall in general, administrative and other expenses, partly offset by a rise in employee compensation and benefits.

As of Dec 31, 2020, AUM was $245.8 billion, up 10% from the year-earlier quarter. Fee-earning AUM totaled $170.1 million or 69% of total AUM during the fourth quarter.

Balance Sheet Position

As of Dec 31, 2020, assets attributable to Carlyle shareholders (including net cash and equivalents, net accrued performance revenue and investments) totaled $3.4 billion, compared with $2.4 billion in prior-year quarter.

Cash and cash equivalents were $987.6 billion in the fourth quarter, with no balance drawn on the $775 million revolving line of credit.

Our Viewpoint

Carlyle delivered an impressive performance in the fourth quarter. Rise in AUM given the inflows will support top-line expansion. Moreover, prudent cost management will boost profitability to some extent.

The Carlyle Group L.P. Price, Consensus and EPS Surprise

The Carlyle Group L.P. Price, Consensus and EPS Surprise
The Carlyle Group L.P. Price, Consensus and EPS Surprise

The Carlyle Group L.P. price-consensus-eps-surprise-chart | The Carlyle Group L.P. Quote

Currently, Carlyle 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 Companies

Evercore EVR shares gained 4% in the afterhours trading session in response to better-than-expected fourth-quarter 2020 results. Adjusted earnings per share of $5.67 handily surpassed the Zacks Consensus Estimate of $2.29. Also, the bottom line was up from the prior-year quarter’s $2.72 per share.

Waddell & Reed Financial Inc.’s WDR fourth-quarter 2020 adjusted earnings of 41 cents per share lagged the Zacks Consensus Estimate of 46 cents. However, the bottom line was above 23 cents reported in the prior-year quarter.

Franklin Resources Inc. BEN reported first-quarter fiscal 2021 (ended Dec 31) adjusted earnings of 73 cents per share, inching past the Zacks Consensus Estimate of 72 cents. Results also compare favorably with the earnings of 67 cents per share recorded in the prior-year quarter.

Breakout Biotech Stocks with Triple-Digit Profit Potential

The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.

Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.

See these 7 breakthrough stocks now>>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Franklin Resources, Inc. (BEN) : Free Stock Analysis Report

Waddell & Reed Financial, Inc. (WDR) : Free Stock Analysis Report

Evercore Inc (EVR) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research