The Carlyle Group Inc. CG reported fourth-quarter 2024 post-tax distributable earnings per share of 92 cents, which missed the Zacks Consensus Estimate by 8%. The figure compared favorably with earnings of 86 cents per share 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 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 $210.9 million against the net loss of $692 million incurred a year ago.

For 2024, the company reported post-tax distributable earnings per share of $3.66, which missed the Zacks Consensus Estimate by 2%. The metric rose from $3.24 in 2023. Net income was $1.02 billion against a net loss of $608.4 million in 2023.

Carlyle’s Quarterly Revenues & Expenses Increase

Fourth-quarter segmental revenues were $948.5 million, up 5.8% from the year-ago quarter. The top line missed the Zacks Consensus Estimate by 7.5%.

For 2024, segmental revenues were $3.66 billion, up 7.4% from the year-ago level. The top line missed the Zacks Consensus Estimate of $3.74 billion. 

Total segment fee revenues were up 9.9% year over year to $654.7 million. An increase in transaction and portfolio advisory fees, as well as fee-related performance revenues, led to the rise.  

Realized performance revenues fell 4.7% from the year-ago quarter to $245.7 million. 

Total segmental expenses grew 14.4% to $564.6 million. The increase was due to a rise in almost all components of segment expenses, except for for interest expenses.

Carlyle’s Total AUM Rises

As of Dec. 31, 2024, total AUM was $441 billion, up 3.5% from the prior-year quarter. 

Fee-earning AUM was $304.4 billion, which fell 0.9% year over year.

Carlyle’s Capital Distribution Activities

In the reported quarter, CG repurchased or withheld 1.5 million shares of common stock for $76 million. As of Dec. 31, 2024, $0.9 billion worth of shares were available under the authorization.

Our View on Carlyle

A rising total AUM balance, 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 concerning.

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

Invesco’s IVZ fourth-quarter 2024 adjusted earnings of 52 cents per share surpassed the Zacks Consensus Estimate of 49 cents. Moreover, the bottom line increased 10.6% from the prior-year quarter.

The results primarily gained from a decline in adjusted expenses and higher adjusted net revenues. An increase in the AUM balance on decent inflows was a positive for IVZ.

BlackRock’s BLK fourth-quarter 2024 adjusted earnings of $11.93 per share surpassed the Zacks Consensus Estimate of $11.44. The figure reflects a rise of 23.5% from the year-ago quarter.

BLK’s results benefited from an improvement in revenues. AUM witnessed robust growth and touched the $11.55-trillion mark, driven by net inflows, partially offset by market depreciation and negative forex impacts. However, higher expenses and lower non-operating income acted as headwinds.

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

BlackRock (BLK) : Free Stock Analysis Report

Invesco Ltd. (IVZ) : Free Stock Analysis Report

Carlyle Group Inc. (CG) : Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research