Brookfield Asset Management reported second-quarter earnings that missed analyst estimates, prompting a slight decline in its stock price during premarket trading.
The Canadian asset manager, which oversees more than $1 trillion in assets, posted adjusted earnings per share of C$0.82, below the C$0.85 forecast from a Refinitiv survey of analysts. Revenue totaled C$3.4 billion, also falling short of the C$3.6 billion estimate.
Chief Executive Officer Bruce Flatt attributed the underperformance to weaker-than-expected performance in the company’s real estate and renewable power segments. Flatt noted that while these divisions faced headwinds, the private equity and infrastructure arms delivered stronger results.
The company’s stock, which had been trading near all-time highs in recent weeks, edged down 1.2% in early trading following the earnings release. Analysts at RBC Capital Markets maintained a neutral rating on the stock, citing valuation concerns despite the company’s long-term growth outlook.
Brookfield’s results follow a string of mixed earnings from major asset managers, as market volatility and higher interest rates weighed on investment returns. The company is scheduled to hold an earnings call with investors later this week to discuss the quarter’s performance in greater detail.
