TPG earnings: what to look for from TPG

Global alternative asset manager TPG (NASDAQ:TPG) will be announcing earnings results this Thursday before market open. Here’s what to expect.

TPG beat analysts’ revenue expectations last quarter, reporting revenues of $645.7 million, up 12% year on year. It was a stunning quarter for the company, with a solid beat of analysts’ AUM estimates and a beat of analysts’ EPS estimates.

Is TPG a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, the market is expecting TPG’s revenue to grow 16.7% year on year, improving from the 10.8% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. TPG has a history of exceeding Wall Street’s expectations.

Looking at TPG’s peers in the asset management segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Artisan Partners delivered year-on-year revenue growth of 3.7%, beating analysts’ expectations by 1.4%, and Blackstone reported a revenue decline of 2.3%, topping estimates by 1.5%. Blackstone traded up 7.7% following the results.

Read our full analysis of Artisan Partners’s results here and Blackstone’s results here.

Investors in the asset management segment have had steady hands going into earnings, with share prices flat over the last month. TPG is up 2.5% during the same time and is heading into earnings with an average analyst price target of $57.41 (compared to the current share price of $44.59).

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