Here's What to Look for When Brookfield Asset Management Reports

Global alternative asset manager Brookfield Asset Management (BAM) , a successful enterprise in its niche sector, reports third-quarter earnings on Friday. 

What should investors look for, and should they buy shares?

The big question is whether earnings will push the company's stock up beyond the more than 12% gain already seen this year. The answer is that Brookfield Asset Management, which boasts about $250 billion in assets under management, looks like a growth stock winner.

With a rich 100-year history of owning and operating assets, Brookfield Asset Management specifically focuses on infrastucture, private equity, property and renewable power.

The company has been in the news recently for some of its holdings, including the initial public offering of methane producer Ember and bowing out of an auction for TerraForm Power shares, as well as the $5.2 billion deal to snap up a Petrobras' gas pipeline operation.

Let's look at the elements of the earnings report that demands scrutiny.

To put things into perspective, here are the three elements that demand investor scrutiny when earnings are released.

First, ignoring the depressed 8%-plus top-line growth in the third-quarter last year, Brookfield Asset Management over the past three quarters has posted double-digit sale increases year over year. Friday might reveal a change in script.

Analysts are projecting a 2% year-over-year drop in revenue to $4.8 billion. If results from Brookfield Renewable Energy, a listed subsidiary, is analyzed, the figures are largely business as usual.

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