Brookfield Corporation Reports Strong Financial Results for Q2 2024
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Brookfield Corporation Reports Strong Financial Results for Q2 2024
Brookfield Corporation (NYSE:BN, TSX:BN) announced its financial results for the quarter ended June 30, 2024, posting substantial gains and outperforming Wall Street consensus estimates.
Key Financial Metrics
| Metrics | Q2 2024 | Q1 2024 | Q2 2023 | YoY Change | Consensus Estimates |
|---|---|---|---|---|---|
| Total Revenue | $2.1 billion | N/A | N/A | - | $1.7 billion |
| Earnings Per Share (EPS) | $1.35 | N/A | N/A | - | $1.07 |
| Distributable Earnings (DE) | $2.1 billion | N/A | N/A | 80% increase | - |
Brookfield Corporation reported total distributable earnings of $2.1 billion for Q2 2024, representing a substantial 80% year-over-year increase. The company also reported an EPS of $1.35, exceeding the Wall Street consensus estimate of $1.07.
Revenue Performance Across Major Segments
| Segment | Q2 2024 DE ($) | LTM DE ($) | YoY % Change |
|---|---|---|---|
| Asset Management | $636 million | $2.5 billion | 17% |
| Wealth Solutions | $292 million | $1.0 billion | - |
| Operating Businesses | $371 million | $1.5 billion | 7% (Operating FFO) |
| Real Estate | N/A | N/A | 3% growth in NOI |
| Realizations | $1.0 billion | $1.4 billion | - |
The Asset Management segment posted distributable earnings of $636 million in Q2 2024, a 17% increase over the prior year. The Wealth Solutions segment's distributable earnings reached $292 million, and the Operating Businesses segment generated $371 million in distributable earnings, driven by 7% growth in Operating Funds from Operations (Operating FFO).
Key Operational Data
| Metrics | Q2 2024 | LTM | YoY % Change |
|---|---|---|---|
| Assets Under Management | $1 trillion | - | - |
| Fee-Bearing Capital | $514 billion | - | 17% (LTM) |
Assets Under Management grew to approximately $1 trillion, with fee-bearing capital increasing to $514 billion, a 17% rise over the last twelve months.
Comments from Company Officers
Nick Goodman, President of Brookfield Corporation, remarked, "We achieved strong financial performance in the second quarter, with cash flows across our asset management, wealth solutions, and operating businesses continuing to grow. This momentum is expected to build over the balance of 2024 and beyond. With capital markets improving and a constructive economic backdrop, we expect transaction activity to continue to increase over the coming quarters."
Dividends or Share Repurchase Program
The Board declared a quarterly dividend of $0.08 per share, payable on September 27, 2024, to shareholders of record as of the close of business on September 12, 2024. The company also reported $800 million of share buybacks completed to date in 2024.
Forward Guidance
Brookfield expects fundraising to ramp up in the second half of 2024, potentially boosting earnings further. The company anticipates increased transaction activity and continued focus on capital repurchases to enhance shareholder value.
Stock Price Movement
Following the earnings release, Brookfield Corporation’s stock experienced a positive turn, with the after-event percentage change standing at 7.2%.
Summary
Brookfield Corporation has reported a strong quarter with significant gains in distributable earnings and a positive outlook for continued growth in 2024. The company has exceeded consensus expectations and is on track for further success with improved capital market conditions and strategic transactions.
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