We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Blackstone (BX) Q2 Earnings Beat as Revenues Surge, Costs Up
Read MoreHide Full Article
The Blackstone Group L.P. (BX - Free Report) reported second-quarter 2018 economic net income (ENI) of 90 cents per share, which handily outpaced the Zacks Consensus Estimate of 71 cents. Also, the figure was 55% above the prior-year quarter level.
Shares of Blackstone have gained nearly 1% in pre-market trading. Notably, the stock’s price performance after the full day’s trading will give a better indication about investors’ sentiments.
The quarter saw a substantial jump in revenues and growth in assets under management (AUM), which was mainly driven by inflows. However, rise in expenses was the undermining factor.
Blackstone reported ENI of $1.1 billion, jumping 56% year over year.
Revenues & Costs Surge
Total revenues (GAAP basis) surged 71% year over year to $2.63 billion. The substantial increase was mainly driven by higher total investment income and interest and dividend revenues. Also, the top line surpassed the Zacks Consensus Estimate of $1.73 billion.
Total expenses (GAAP basis) rose 15% year over year to $1.02 billion. The increase was primarily due to a rise in general, administrative and other costs, and total compensation and benefits.
Fee-earning AUM grew 18% year over year to $333 billion. Total AUM amounted to $439.4 billion as of Jun 30, 2018, up 18% from the year-ago quarter. The rise in total AUM was largely driven by $20.1 billion of inflows.
As of Jun 30, 2018, Blackstone had $5.2 billion in total cash, cash equivalents and corporate treasury investments and $11.1 billion of cash and net investments.
Capital Deployment Update
Blackstone returned nearly $200 million to unitholders through a special cash distribution of 10 cents per share and repurchased 2.2 million units in the reported quarter. This was part of the company’s previously announced capital deployment program.
Our Viewpoint
Blackstone remains well positioned to capitalize on the changing investment landscape by making long-term investments and augmenting its fund-raising abilities. However, increased dependence on management and advisory fees can affect the company’s financials in the near term.
The Blackstone Group L.P. Price, Consensus and EPS Surprise
Performance of Other Investment Manager and Upcoming Releases
BlackRock’s (BLK - Free Report) second-quarter 2018 adjusted earnings of $6.66 per share outpaced the Zacks Consensus Estimate of $6.60. Results benefited from an improvement in revenues, rise in AUM and steady long-term inflows. However, an increase in operating expenses acted as a headwind.
Among other investment managers, Ameriprise Financial (AMP - Free Report) and Invesco (IVZ - Free Report) are slated to report results on Jul 24 and Jul 26, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Blackstone (BX) Q2 Earnings Beat as Revenues Surge, Costs Up
The Blackstone Group L.P. (BX - Free Report) reported second-quarter 2018 economic net income (ENI) of 90 cents per share, which handily outpaced the Zacks Consensus Estimate of 71 cents. Also, the figure was 55% above the prior-year quarter level.
Shares of Blackstone have gained nearly 1% in pre-market trading. Notably, the stock’s price performance after the full day’s trading will give a better indication about investors’ sentiments.
The quarter saw a substantial jump in revenues and growth in assets under management (AUM), which was mainly driven by inflows. However, rise in expenses was the undermining factor.
Blackstone reported ENI of $1.1 billion, jumping 56% year over year.
Revenues & Costs Surge
Total revenues (GAAP basis) surged 71% year over year to $2.63 billion. The substantial increase was mainly driven by higher total investment income and interest and dividend revenues. Also, the top line surpassed the Zacks Consensus Estimate of $1.73 billion.
Total expenses (GAAP basis) rose 15% year over year to $1.02 billion. The increase was primarily due to a rise in general, administrative and other costs, and total compensation and benefits.
Fee-earning AUM grew 18% year over year to $333 billion. Total AUM amounted to $439.4 billion as of Jun 30, 2018, up 18% from the year-ago quarter. The rise in total AUM was largely driven by $20.1 billion of inflows.
As of Jun 30, 2018, Blackstone had $5.2 billion in total cash, cash equivalents and corporate treasury investments and $11.1 billion of cash and net investments.
Capital Deployment Update
Blackstone returned nearly $200 million to unitholders through a special cash distribution of 10 cents per share and repurchased 2.2 million units in the reported quarter. This was part of the company’s previously announced capital deployment program.
Our Viewpoint
Blackstone remains well positioned to capitalize on the changing investment landscape by making long-term investments and augmenting its fund-raising abilities. However, increased dependence on management and advisory fees can affect the company’s financials in the near term.
The Blackstone Group L.P. Price, Consensus and EPS Surprise
The Blackstone Group L.P. Price, Consensus and EPS Surprise | The Blackstone Group L.P. Quote
Currently, Blackstone carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Investment Manager and Upcoming Releases
BlackRock’s (BLK - Free Report) second-quarter 2018 adjusted earnings of $6.66 per share outpaced the Zacks Consensus Estimate of $6.60. Results benefited from an improvement in revenues, rise in AUM and steady long-term inflows. However, an increase in operating expenses acted as a headwind.
Among other investment managers, Ameriprise Financial (AMP - Free Report) and Invesco (IVZ - Free Report) are slated to report results on Jul 24 and Jul 26, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>