Carlyle Group Inc NASDAQ CG Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Carlyle Group Inc. (NASDAQ: CG) Reports Second Quarter 2024 Financial Results
The Carlyle Group Inc. (NASDAQ: CG) reported its financial results for the second quarter of 2024 on August 5, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Consensus Estimates | Performance Against Consensus |
|---|---|---|---|
| Earnings per Share (EPS) | $0.78 | $0.83 | Missed by $0.05 |
Carlyle's Q2 2024 EPS was $0.78, missing the consensus estimate of $0.83 by $0.05. Despite missing the earnings estimate, the company showed strong momentum in its various business segments, which underpins its positive outlook.
Revenue Performance by Segment
| Segment | Analysis |
|---|---|
| Global Credit | Strong activity in opportunistic and real asset credit strategies. |
| Global Investment Solutions | High activity levels driven by client investment needs. |
| Global Private Equity | Solid performance across Japan buyouts and U.S. real estate. |
Carlyle's segments demonstrated robust performance, with Global Credit experiencing double-digit growth year-over-year and reaching record levels. Global Investment Solutions saw high client activity, while Global Private Equity benefitted from strong fundraising and new transactions.
Comments from Company Officers
Harvey Schwartz, Chief Executive Officer, emphasized the company's strong momentum across its business and highlighted the successful transactions, such as the $10 billion acquisition of a loan portfolio from Discover Financial Services and the $3 billion sale of Cogentrix Energy. CFO John Redett also pointed out the firm's record fee-related earnings (FRE), achieving a $273 million increase in the quarter, up over 30% from Q2 2023.
Dividends and Share Repurchase Program
Carlyle repurchased $178 million of shares in Q2 2024, totaling approximately $330 million for the first half of the year. Total shares outstanding are now at the lowest level since 2021, with $1.1 billion remaining on the share repurchase authorization.
Forward Guidance
The company maintains its target of $1.1 billion in FRE for 2024, suggesting an even stronger performance in the second half of the year. Carlyle expects to raise significant capital across all segments to achieve its $40 billion fundraising target for the year.
Stock Price Movement
Following the earnings release, Carlyle's stock price experienced a -7.17% change.
In conclusion, despite missing the earnings estimate, Carlyle's Q2 2024 results reflect strong business momentum and a positive outlook for the remainder of the year reinforced by continued robust performance across its segments.
