Oaktree Capital Group, LLC Earnings: Here’s Why Shares are Up Now

Oaktree Capital Group (NYSE:OAK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 1%.

Earnings Cheat Sheet


Revenue: Rose 1143.39% to $447 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: reported adjusted EPS income of $1.47 per share. By that measure, the company beat the mean analyst estimate of $1.30. It missed the average revenue estimate of $490.67 million.

Quoting Management: Howard Marks, Chairman, said, “The fourth quarter of 2012 was a record quarter within a record year for Oaktree. Across the firm, our investment teams delivered the type of performance that is the hallmark of Oaktree’s risk-controlled, value-driven investment approach. Compelling returns across our many asset classes drove revenues, distributable earnings and distributions to our clients and unitholders to their highest levels ever.”

Key Stats (on next page)…

Revenue increased 1300.81% from $31.91 million in the previous quarter. EPS increased 67.05% from $0.88 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.11 to a profit $1.25. For the current year, the average estimate has moved up from a profit of $4.75 to a profit of $5.14 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)