Carlyle Group Cuts Losses, Greatly Misses EPS Expectations

Carlyle Group Cuts Losses, Greatly Misses EPS Expectations
By The Carlyle Group (annual report),User:Fairlyoddparents1234 (uploaded result) [Public domain], via Wikimedia Commons

Carlyle Group LP (NASDAQ:CG) announced its second quarter earnings before opening bell this morning, posting earnings per share that were much less than expectations. The company reported earnings of 39 cents per share. The firm’s economic net profit was $156 million, compared to last year’s loss of $57 million. Revenue was $508 million, compared to $61 million last year.

Carlyle Group Cuts Losses, Greatly Misses EPS Expectations

Analysts had been expecting the firm to report earnings per share of between 55 and 58 cents per share on revenue of $563.6 million.

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Carlyle Group’s second quarter results broken down

Distributable earnings available for paying out to investors were $163 million before tax and 53 cents per share after tax. Overall, the firm’s losses for the second quarter were $3.3 million or 7 cents per unit. That’s compared with last year’s loss of $10.3 million or 26 cents per unit.

Carlyle Group reports strong portfolio performance

Carlyle Group went public a little over a year ago. The firm is one of the largest buyout firms, and it earns all its money by acquiring companies, fixing their financial problems or operational challenges and then selling them for a profit. In June it agreed to buy Marelli Motori from Melrose Industries PLC (LON:MRO). That deal was worth $279.71 million.

According to a report in The Wall Street Journal, Saabira Chaudhuri of Dow Jones reports that Co-Chief Executive Officer William E. Conway Jr. expressed his pleasure with the company’s buyout portfolio in the U.S. He said the portfolio is producing plenty of cash carry and accrued carry which will be used for future distributions. Carlyle Group LP (NASDAQ:CG) reported net proceeds of $3.9 billion from its 144 investments across 29 carry funds.

Fund management fees were up 1 percent to $242 million. Performance fees increased significantly to $259.1 million from negative fees of $220.4 million in the same quarter a year ago. Carlyle Group LP (NASDAQ:CG)’s second quarter investment income climbed 57 percent to $11 million, while assets under investment jumped to $180.4 billion, compared to $156.2 billion in the same quarter a year ago.

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