Brookfield (NYSE:BN) Releases Earnings Results, Beats Expectations By $0.04 EPS

Brookfield (NYSE:BN) released its quarterly earnings results on Thursday. The company reported $0.66 earnings per share for the quarter, topping analysts’ consensus estimates of $0.62 by $0.04, Zacks reports. Brookfield had a return on equity of 3.86% and a net margin of 1.76%.

Here are the key takeaways from Brookfield’s conference call:

• Distributable earnings before realizations rose 15% year over year to $1.4 billion in the quarter, or $0.61 per share. Brookfield also reported record quarterly fundraising of $77 billion, fee-bearing capital growth of 19% to $672 billion, and $210 billion of deployable capital.
• Management highlighted significant growth opportunities in AI infrastructure, power generation, and nuclear energy, including a planned $100 billion Kentucky AI campus and a $17.5 billion U.S. government financing commitment supporting Westinghouse’s reactor pipeline. Brookfield also expects to recycle stabilized AI assets to institutional investors over time.
• Wealth Solutions continued to expand, with insurance assets exceeding $190 billion after the Just Group acquisition, $5 billion of annuity sales during the quarter, and distributable earnings up 23% year over year to $480 million. Management sees a path to more than $300 billion of insurance assets by the end of the decade, supported by bank and broker-dealer distribution.
• Just Group generated an initial return on equity of approximately 12%, but management said its cost structure is two to three times that of some competitors and that pension pricing remains too aggressive to meet Brookfield’s return targets. Brookfield is exiting unprofitable initiatives, cutting costs, and rotating the investment portfolio to improve spreads toward 200 basis points.

Brookfield Price Performance

Brookfield stock traded up $0.21 during mid-day trading on Thursday, hitting $44.90. 2,914,706 shares of the company were exchanged, compared to its average volume of 5,197,942. Brookfield has a 12-month low of $37.93 and a 12-month high of $49.56. The company has a market capitalization of $110.08 billion, a P/E ratio of 88.03 and a beta of 1.54. The business’s 50 day simple moving average is $43.64 and its two-hundred day simple moving average is $43.97. The company has a debt-to-equity ratio of 1.54, a current ratio of 1.32 and a quick ratio of 1.20.

Institutional Trading of Brookfield

Large investors have recently made changes to their positions in the stock. Quattro Advisors LLC acquired a new position in Brookfield in the 4th quarter valued at about $26,000. Truvestments Capital LLC lifted its stake in shares of Brookfield by 49.9% during the 4th quarter. Truvestments Capital LLC now owns 640 shares of the company’s stock worth $29,000 after purchasing an additional 213 shares during the period. TCTC Holdings LLC grew its position in shares of Brookfield by 49.9% in the fourth quarter. TCTC Holdings LLC now owns 1,285 shares of the company’s stock valued at $59,000 after purchasing an additional 428 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC acquired a new position in Brookfield in the fourth quarter valued at $79,000. Finally, Parkside Financial Bank & Trust lifted its position in Brookfield by 37.4% during the fourth quarter. Parkside Financial Bank & Trust now owns 1,815 shares of the company’s stock worth $83,000 after buying an additional 494 shares during the period. Institutional investors and hedge funds own 61.60% of the company’s stock.

Analyst Upgrades and Downgrades

Several research firms have weighed in on BN. National Bank Financial upped their target price on Brookfield from $58.00 to $60.00 and gave the company an “outperform” rating in a report on Friday, May 15th. Scotiabank reaffirmed an “outperform” rating and set a $53.00 price target (up from $48.50) on shares of Brookfield in a research note on Friday, May 15th. TD boosted their price objective on shares of Brookfield from $59.00 to $60.00 and gave the stock a “buy” rating in a research report on Tuesday, May 19th. Scotia increased their price objective on shares of Brookfield from $48.50 to $53.00 and gave the company a “sector outperform” rating in a research note on Friday, May 15th. Finally, TD Securities restated a “buy” rating and set a $60.00 target price on shares of Brookfield in a report on Tuesday, May 19th. Two research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have given a Hold rating to the stock. According to MarketBeat.com, the company currently has an average rating of “Buy” and an average target price of $56.64.

About Brookfield

Brookfield Corporation (NYSE:BN) is a global alternative asset manager that specializes in real assets. The company invests in and operates businesses across real estate, infrastructure, renewable power and energy, private equity and credit. Its activities span both ownership and active management of physical assets as well as the operation of investment funds and vehicles that provide institutional and retail investors access to long?lived, cash?generating assets.

Brookfield’s services include asset management, direct investing, property development and the operation of infrastructure and energy businesses.