Shares of Blackstone (BX - Free Report) gained 6.8% following the release of its fourth-quarter and 2021 results. Distributable earnings of $1.71 per share for the quarter comfortably surpassed the Zacks Consensus Estimate of $1.34. The figure reflects a rise of 51% from the prior-year quarter.
Results for the quarter primarily benefited from an improvement in revenues. A rise in assets under management (AUM) balance, mainly driven by inflows, was another positive for the company. However, higher operating expenses hurt results to some extent.
Net income attributable to Blackstone was $1.40 billion, up 87% from the year-ago quarter.
For 2021, distributable earnings per share of $4.77 surpassed the Zacks Consensus Estimate of $4.40. The bottom line reflects growth of 80% from $2.65 per share recorded in 2020. Net income attributable to Blackstone was $5.86 billion, up significantly from $1.05 billion recorded in 2020.
Segment Revenues Improve, Expenses Rise
Total quarterly segment revenues were $4.46 billion, up 59% year over year. The reported figure surpassed the Zacks Consensus Estimate of $3.10 billion. On a GAAP basis, revenues were $5.76 billion, up 59% from the prior-year quarter.
In 2021, segment revenues were $11.66 billion, up 79% year over year. The reported figure surpassed the Zacks Consensus Estimate of $10.31 billion. On a GAAP basis, revenues were $22.58 billion, up from $6.10 billion recorded in 2020.
Total quarterly expenses (GAAP basis) were $2.50 billion, increasing 55% from the year-ago quarter. All expense components witnessed an increase.
As of Dec 31, 2021, Blackstone had $6.9 billion in total cash, cash equivalents and corporate treasury investments, as well as $17.7 billion in cash and net investments. Further, the company has a $2.3-billion credit revolver.
AUM Improves
Fee-earning AUM grew 38% year over year to $649.97 billion as of Dec 31, 2021. Total AUM amounted to $880.90 billion as of the same date, up 42% year over year. The rise in total AUM was largely driven by $154.8 billion of inflows.
As of Dec 31, 2021, undrawn capital available for investment was $135.8 billion.
Our Take
Blackstone remains 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, elevated expenses are expected to hamper the bottom line to an extent in the near term.
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 Managers
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2021 adjusted earnings of $10.42 per share outpaced the Zacks Consensus Estimate of $10.23. The figure reflects a rise of 2.4% from the year-ago quarter. Net income attributable to BlackRock (on a GAAP basis) was $1.64 billion, up 6.1% from the prior-year quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in AUM balance.
Invesco’s (IVZ - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share handily outpaced the Zacks Consensus Estimate of 76 cents. The bottom line grew 19.4% from the prior-year quarter. On a GAAP basis, Invesco’s net income attributable to common shareholders was $426.8 million or 92 cents per share, up from $211.1 million or 46 cents per share a year ago.
IVZ’s results reflected an improvement in revenues and solid growth in AUM balance. However, a rise in operating expenses was a headwind.
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% from the year-ago quarter. Ameriprise’s net income (GAAP basis) was $701 million or $5.96 per share, up from $177 million or $1.43 per share in the prior-year quarter.
AMP’s results were aided by growth in revenues, partly offset by higher expenses. Improvements in AUM and assets under administration balance were tailwinds.
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Shares of Blackstone (BX - Free Report) gained 6.8% following the release of its fourth-quarter and 2021 results. Distributable earnings of $1.71 per share for the quarter comfortably surpassed the Zacks Consensus Estimate of $1.34. The figure reflects a rise of 51% from the prior-year quarter.
Results for the quarter primarily benefited from an improvement in revenues. A rise in assets under management (AUM) balance, mainly driven by inflows, was another positive for the company. However, higher operating expenses hurt results to some extent.
Net income attributable to Blackstone was $1.40 billion, up 87% from the year-ago quarter.
For 2021, distributable earnings per share of $4.77 surpassed the Zacks Consensus Estimate of $4.40. The bottom line reflects growth of 80% from $2.65 per share recorded in 2020. Net income attributable to Blackstone was $5.86 billion, up significantly from $1.05 billion recorded in 2020.
Segment Revenues Improve, Expenses Rise
Total quarterly segment revenues were $4.46 billion, up 59% year over year. The reported figure surpassed the Zacks Consensus Estimate of $3.10 billion. On a GAAP basis, revenues were $5.76 billion, up 59% from the prior-year quarter.
In 2021, segment revenues were $11.66 billion, up 79% year over year. The reported figure surpassed the Zacks Consensus Estimate of $10.31 billion. On a GAAP basis, revenues were $22.58 billion, up from $6.10 billion recorded in 2020.
Total quarterly expenses (GAAP basis) were $2.50 billion, increasing 55% from the year-ago quarter. All expense components witnessed an increase.
As of Dec 31, 2021, Blackstone had $6.9 billion in total cash, cash equivalents and corporate treasury investments, as well as $17.7 billion in cash and net investments. Further, the company has a $2.3-billion credit revolver.
AUM Improves
Fee-earning AUM grew 38% year over year to $649.97 billion as of Dec 31, 2021. Total AUM amounted to $880.90 billion as of the same date, up 42% year over year. The rise in total AUM was largely driven by $154.8 billion of inflows.
As of Dec 31, 2021, undrawn capital available for investment was $135.8 billion.
Our Take
Blackstone remains 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, elevated expenses are expected to hamper the bottom line to an extent in the near term.
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 Managers
BlackRock, Inc.’s (BLK - Free Report) fourth-quarter 2021 adjusted earnings of $10.42 per share outpaced the Zacks Consensus Estimate of $10.23. The figure reflects a rise of 2.4% from the year-ago quarter. Net income attributable to BlackRock (on a GAAP basis) was $1.64 billion, up 6.1% from the prior-year quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in AUM balance.
Invesco’s (IVZ - Free Report) fourth-quarter 2021 adjusted earnings of 86 cents per share handily outpaced the Zacks Consensus Estimate of 76 cents. The bottom line grew 19.4% from the prior-year quarter. On a GAAP basis, Invesco’s net income attributable to common shareholders was $426.8 million or 92 cents per share, up from $211.1 million or 46 cents per share a year ago.
IVZ’s results reflected an improvement in revenues and solid growth in AUM balance. However, a rise in operating expenses was a headwind.
Ameriprise Financial’s (AMP - Free Report) fourth-quarter 2021 adjusted operating earnings per share of $6.15 surpassed the Zacks Consensus Estimate of $5.77. The bottom line reflects a rise of 35.8% from the year-ago quarter. Ameriprise’s net income (GAAP basis) was $701 million or $5.96 per share, up from $177 million or $1.43 per share in the prior-year quarter.
AMP’s results were aided by growth in revenues, partly offset by higher expenses. Improvements in AUM and assets under administration balance were tailwinds.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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