Brookfield Asset Management Q2 Earnings Misses Street View

Brookfield Asset Management Ltd BAM reported Q2 2023 revenues of $985 million which missed the consensus of $1.10 billion. 

EPS of $0.28 missed the consensus of $0.32. 

Distributable earnings rose to $527 million from $511 million, with Fee-Related earnings increasing 6% Y/Y to $548 million on solid fundraising and capital deployment activities.

As of June 30, 2023, the company had $83 billion of uncalled fund commitments and $2.9 billion of cash and cash equivalents. 

The company raised $17 billion in the second quarter and committed to a $50 billion new investment year-to-date. 

"We also continue to see very strong momentum on the fundraising side. We've made terrific progress so far this year, having raised $37 billion of capital to date and expect this to accelerate in the second half of the year as we progress our efforts on recently launched funds. With these fundraising efforts, combined with approximately $50 billion of additional insurance inflows, we expect to raise close to $150 billion of capital this year which should drive meaningful earnings growth in 2024 and beyond," said Connor Teskey, President.

In July, Brookfield Reinsurance Ltd BNRE penned a deal to acquire all of the outstanding shares of common stock of American Equity Investment Life Holding AEL in cash and stock for ~$4.3 billion. AEL shareholders will receive $55.00 per AEL share, consisting of $38.85 in cash and 0.49707 of BAM, having a value equal to $16.15.

Post deal closure, BAM will manage $50 billion of additional insurance fee-bearing capital, which is expected to earn about $125 million of annual base fee revenue.

Dividend: BAM declared a Q2 2023 dividend per share of $0.32, payable on September 29, 2023, to shareholders of record as on August 31, 2023.

Also Read: Brookfield Sells Its 49.95% One New Zealand Stake To Infratil For $1.1B

Price Action: BAM shares are trading higher by 1.88% at $33.61 on the last check Wednesday.