{"id":33939,"date":"2023-05-04T19:30:09","date_gmt":"2023-05-04T19:30:09","guid":{"rendered":"http:\/\/lynettelockhart.com\/client\/carlyles-first-quarter-earnings-drop\/"},"modified":"2023-05-04T19:36:31","modified_gmt":"2023-05-04T19:36:31","slug":"carlyle-shares-fall-after","status":"publish","type":"post","link":"http:\/\/lynettelockhart.com\/client\/carlyle-shares-fall-after\/","title":{"rendered":"Carlyle shares fall after Q1 earnings miss estimates"},"content":{"rendered":"

By Chibuike Oguh<\/p>\n

NEW YORK (Reuters) -Shares of Carlyle Group Inc sank on Thursday after it posted a first-quarter distributable earnings that missed most analyst estimates owing to a sharp drop in income from asset sales in its private-equity portfolio.<\/p>\n

Carlyle lowered its outlook on the closely watched fee-related earnings as it anticipates that the current economic environment would continue to limit how much buyers would pay for its assets. Carlyle’s revenue from asset divestments fell 30% to $165.1 million during the quarter.<\/p>\n

“We continue to navigate one of the most complex financial markets in recent memory, which is clouding the near-term outlook and impacting market sentiment,” said Carlyle Chief Executive Harvey Schwartz during his first analyst earnings call since taking the top job in February.<\/p>\n

“It’s our expectation these effects will last throughout the remainder of the year and impact both FRE and distributable earnings,” Schwartz added, referring to fee-related earnings.<\/p>\n

Carlyle’s shares fell 14% in afternoon trading, declining far more than the broader market and most of its peers, which were trading lower.<\/p>\n

EARNINGS MISS<\/p>\n

Carlyle said its distributable earnings, which represent the cash used to pay dividends to shareholders, fell to $271.6 million, down from $302.8 million a year earlier. That resulted in after-tax distributable earnings per share of 63 cents, which underperformed the average analyst forecast of 69 cents, according to Refinitiv data.<\/p>\n

Last month, Blackstone Inc, the world’s largest private-equity firm, reported a 36% drop in first-quarter distributable earnings due to slower asset disposals, primarily in its real estate portfolio.<\/p>\n

Carlyle’s credit business recorded strong performance during the quarter, with segment distributable earnings nearly doubling to $69 million, helped by higher fund management fees from managing more assets, including from reinsurer Fortitude Re.<\/p>\n

Carlyle said its credit funds appreciated by 3%, while secondaries funds rose 5% and corporate private-equity funds gained 1%. Blackstone had said its corporate private-equity funds had appreciated by 2.8% while liquid credit funds gained 3%.<\/p>\n

Under generally accepted accounting principles, Carlyle’s net income tumbled to $100.7 million, down 82% from $571.6 million a year earlier, driven by a slump in investment income.<\/p>\n

Carlyle generated fee-related earnings of $193.4 million, raised $6.8 billion of new capital, and spent $3.8 billion on new acquisitions. Its total assets under management reached a record $381 billion, up 2% from the prior quarter, driven by fund appreciation. The firm declared a dividend of 35 cents.<\/p>\n

(Reporting by Chibuike Oguh in New York; Editing by Sherry Jacob-Phillips and Lisa Shumaker)<\/p>\n

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By Chibuike Oguh NEW YORK (Reuters) -Shares of Carlyle Group Inc sank on Thursday after it posted a first-quarter distributable earnings that missed most analyst estimates owing to a sharp drop in income from asset sales in its private-equity portfolio. Carlyle lowered its outlook on the closely watched fee-related earnings as it anticipates that the […]<\/p>\n","protected":false},"author":8,"featured_media":33940,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":""},"categories":[1213],"tags":[1223],"class_list":["post-33939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-u-s-business","tag-updated"],"jetpack_featured_media_url":"http:\/\/lynettelockhart.com\/client\/wp-content\/uploads\/Reuters_Direct_Media\/USOnlineReportBusinessNews\/tagreuters.com2023binary_LYNXMPEJ430D8-VIEWIMAGE.jpg","_links":{"self":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/33939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/comments?post=33939"}],"version-history":[{"count":2,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/33939\/revisions"}],"predecessor-version":[{"id":34746,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/posts\/33939\/revisions\/34746"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media\/33940"}],"wp:attachment":[{"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/media?parent=33939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/categories?post=33939"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/lynettelockhart.com\/client\/wp-json\/wp\/v2\/tags?post=33939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}