DigitalBridge (NYSE:DBRG) shares gained nearly 4% today after the alternative asset manager’s fourth-quarter revenue soared by 29.2% year-over-year to 350.31 million. The figure exceeded estimates by $45.2 million. Further, EPS of $0.10 came in ahead of expectations by $0.15.
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DigitalBridge is focused on investing in the digital infrastructure space. In Q4, the company’s Fee revenue jumped to $74 million from $44.25 million a year ago. Similarly, its Principal Investment income soared to $93.53 million from $22.3 million in the year-ago period.
Notably, DBRG’s total AUM (Assets Under Management) has ticked up to $80.1 billion from $52.8 billion at the end of Q4 2022. In sync, its fee-earning equity under management (FEEUM) has jumped by 47% year-over-year to $32.8 billion. This rise in AUM has been accompanied by substantial deleveraging of DBRG’s balance sheet. The asset manager lowered its consolidated debt by 93% to $400 million in H2 2023.
Following this transition, the company is now focusing on growth and profitability over the next three to five years. For Fiscal Year 2024, DBRG expects Fee revenue in the range of $335 million to $360 million. Adjusted EBITDA for the year is anticipated to be between $150 million and $165 million, indicating a 51% growth at the midpoint. Importantly, DBRG plans to deploy $15 billion in total capital expenditures in 2024.
Is DBRG a Good Investment?
Overall, the Street has a Strong Buy consensus rating on DigitalBridge. Following a nearly 35% jump in the company’s share price over the past year, the average DBRG price target of $21.90 points to a modest 8.85% potential upside in the stock.
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