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Blackstone (BX) Stock Gains as Q4 Earnings Beat Estimates
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Blackstone’s (BX - Free Report) fourth-quarter 2023 distributable earnings of $1.11 per share surpassed the Zacks Consensus Estimate of 95 cents. The figure also reflects a rise of 4% from the prior-year quarter.
Shares of BX rallied more than 3% in pre-market trading on better-than-expected quarterly performance.
Results benefited from the rise in segment revenues and improvement in assets under management (AUM) balance. Further, GAAP expenses declined during the quarter.
Net income attributable to Blackstone was $151.8 million compared with $557.9 million in the year-ago quarter.
For 2023, distributable earnings per share of $3.95 beat the Zacks Consensus Estimate of $3.82 but declined 24% year over year. Net income attributable to Blackstone was $1.39 billion, down 20.1%.
Segment Revenues Rise, GAAP Expenses Down
Quarterly total segment revenues were $2.54 billion, up 8% year over year. The top line outpaced the Zacks Consensus Estimate of $2.48 billion.
For 2023, total segment revenues decreased 23% to $9.69 billion. The top line surpassed the Zacks Consensus Estimate of $9.62 billion.
On a GAAP basis, revenues were $1.29 billion, down 24.6% year over year.
Total expenses (GAAP basis) were $941.6 million, down 12% year over year.
As of Dec 31, 2023, Blackstone had $8.4 billion in total cash, cash equivalents and corporate treasury investments, and $16.9 billion in cash and net investments. The company has a $4.3-billion undrawn credit revolver.
AUM Rises
Fee-earning AUM grew 6% year over year to $762.6 billion as of Dec 31, 2023. Total AUM amounted to $1.04 trillion as of the same date, up 7%. The rise in total AUM was primarily driven by $52.7 billion inflows in the reported quarter.
As of Dec 31, 2023, the undrawn capital available for investment was $197.3 billion.
Our Take
Blackstone is well-poised for top-line growth, supported by a continued rise in AUM. The company is expected to keep gaining from its fund-raising ability. However, high expenses and a challenging operating backdrop are expected to hurt the bottom line in the near term.
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2023 adjusted earnings of $9.66 per share handily surpassed the Zacks Consensus Estimate of $8.84. The figure reflects an increase of 8.2% from the year-ago quarter.
BLK’s quarterly results benefited from a rise in revenues and higher non-operating income. Further, AUM balance witnessed an improvement owing to net inflows. However, higher expenses acted as a dampener.
Invesco’s (IVZ - Free Report) fourth-quarter 2023 adjusted earnings of 47 cents per share handily surpassed the Zacks Consensus Estimate of 38 cents. The bottom line grew 20.5% from the prior-year quarter.
Results benefited from an increase in AUM balance on decent inflows. However, a rise in operating expenses and lower revenues were the undermining factors.
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Blackstone (BX) Stock Gains as Q4 Earnings Beat Estimates
Blackstone’s (BX - Free Report) fourth-quarter 2023 distributable earnings of $1.11 per share surpassed the Zacks Consensus Estimate of 95 cents. The figure also reflects a rise of 4% from the prior-year quarter.
Shares of BX rallied more than 3% in pre-market trading on better-than-expected quarterly performance.
Results benefited from the rise in segment revenues and improvement in assets under management (AUM) balance. Further, GAAP expenses declined during the quarter.
Net income attributable to Blackstone was $151.8 million compared with $557.9 million in the year-ago quarter.
For 2023, distributable earnings per share of $3.95 beat the Zacks Consensus Estimate of $3.82 but declined 24% year over year. Net income attributable to Blackstone was $1.39 billion, down 20.1%.
Segment Revenues Rise, GAAP Expenses Down
Quarterly total segment revenues were $2.54 billion, up 8% year over year. The top line outpaced the Zacks Consensus Estimate of $2.48 billion.
For 2023, total segment revenues decreased 23% to $9.69 billion. The top line surpassed the Zacks Consensus Estimate of $9.62 billion.
On a GAAP basis, revenues were $1.29 billion, down 24.6% year over year.
Total expenses (GAAP basis) were $941.6 million, down 12% year over year.
As of Dec 31, 2023, Blackstone had $8.4 billion in total cash, cash equivalents and corporate treasury investments, and $16.9 billion in cash and net investments. The company has a $4.3-billion undrawn credit revolver.
AUM Rises
Fee-earning AUM grew 6% year over year to $762.6 billion as of Dec 31, 2023. Total AUM amounted to $1.04 trillion as of the same date, up 7%. The rise in total AUM was primarily driven by $52.7 billion inflows in the reported quarter.
As of Dec 31, 2023, the undrawn capital available for investment was $197.3 billion.
Our Take
Blackstone is well-poised for top-line growth, supported by a continued rise in AUM. The company is expected to keep gaining from its fund-raising ability. However, high expenses and a challenging operating backdrop are expected to hurt the bottom line in the near term.
Blackstone Inc. Price, Consensus and EPS Surprise
Blackstone Inc. price-consensus-eps-surprise-chart | Blackstone Inc. Quote
Currently, Blackstone carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2023 adjusted earnings of $9.66 per share handily surpassed the Zacks Consensus Estimate of $8.84. The figure reflects an increase of 8.2% from the year-ago quarter.
BLK’s quarterly results benefited from a rise in revenues and higher non-operating income. Further, AUM balance witnessed an improvement owing to net inflows. However, higher expenses acted as a dampener.
Invesco’s (IVZ - Free Report) fourth-quarter 2023 adjusted earnings of 47 cents per share handily surpassed the Zacks Consensus Estimate of 38 cents. The bottom line grew 20.5% from the prior-year quarter.
Results benefited from an increase in AUM balance on decent inflows. However, a rise in operating expenses and lower revenues were the undermining factors.