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Blackstone (BX) Stock Up 3.3% on Q1 Earnings Beat, AUM Up Y/Y
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Shares of Blackstone (BX - Free Report) gained 3.3%, following the release of its first-quarter 2021 results. Distributable earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 72 cents. Moreover, the figure represents a significant rise from 46 cents recorded in the prior-year quarter.
Results for the quarter primarily benefited from an improvement in revenues. Moreover, a rise in assets under management (AUM) balance, mainly driven by inflows, was a positive for the company. However, higher operating expenses were the undermining factor.
Net income attributable to Blackstone was $1.75 billion against a net loss of $1.07 billion in the year-ago quarter.
Segment Revenues Improve, Expenses Rise
Total quarterly segment revenues were $2.05 billion, up 79.5% year over year. The reported figure surpassed the Zacks Consensus Estimate of $1.76 billion. On a GAAP basis, revenues were $5.30 billion against negative revenues of $3.08 billion reported in the prior-year quarter.
Total expenses (GAAP basis) were $2.05 billion against negative expenses of $638.1 million in the year-ago quarter. A significant rise in total compensation and benefits costs was recorded in the quarter.
As of Mar 31, 2021, Blackstone had $5.4 billion in total cash, cash equivalents and corporate treasury investments as well as $13.1 billion in cash and net investments. Further, the company has a $2.3-billion undrawn credit revolver.
AUM Improves
Fee-earning AUM grew 13.8% year over year to $481.23 billion as of Mar 31, 2021. Total AUM amounted to $648.80 billion as of the same date, up 20.6% year over year. The rise in total AUM was largely driven by $31.6 billion of inflows.
As of Mar 31, 2021, undrawn capital available for investment was $148.2 billion.
Our Viewpoint
Growth in AUM, driven by inflows, is expected to continue aiding Blackstone’s top line in the near term. Also, the company is well-positioned to gain from its fund-raising ability. However, continuously increasing expenses are expected to hamper the bottom line to an extent in the near term.
Blackstone Group IncThe Price, Consensus and EPS Surprise
Performance & Upcoming Release Date of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2021 adjusted earnings of $7.77 per share outpaced the Zacks Consensus Estimate of $7.64. The figure reflects a rise of 17.7% from the year-ago quarter’s number.
Cohen & Steers’ (CNS - Free Report) first-quarter 2021 adjusted earnings of 79 cents per share lagged the Zacks Consensus Estimate of 81 cents. Nevertheless, the bottom line was 29.5% higher than the year-ago figure.
Invesco (IVZ - Free Report) is slated to release quarterly results on Apr 27.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
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Blackstone (BX) Stock Up 3.3% on Q1 Earnings Beat, AUM Up Y/Y
Shares of Blackstone (BX - Free Report) gained 3.3%, following the release of its first-quarter 2021 results. Distributable earnings of 96 cents per share surpassed the Zacks Consensus Estimate of 72 cents. Moreover, the figure represents a significant rise from 46 cents recorded in the prior-year quarter.
Results for the quarter primarily benefited from an improvement in revenues. Moreover, a rise in assets under management (AUM) balance, mainly driven by inflows, was a positive for the company. However, higher operating expenses were the undermining factor.
Net income attributable to Blackstone was $1.75 billion against a net loss of $1.07 billion in the year-ago quarter.
Segment Revenues Improve, Expenses Rise
Total quarterly segment revenues were $2.05 billion, up 79.5% year over year. The reported figure surpassed the Zacks Consensus Estimate of $1.76 billion. On a GAAP basis, revenues were $5.30 billion against negative revenues of $3.08 billion reported in the prior-year quarter.
Total expenses (GAAP basis) were $2.05 billion against negative expenses of $638.1 million in the year-ago quarter. A significant rise in total compensation and benefits costs was recorded in the quarter.
As of Mar 31, 2021, Blackstone had $5.4 billion in total cash, cash equivalents and corporate treasury investments as well as $13.1 billion in cash and net investments. Further, the company has a $2.3-billion undrawn credit revolver.
AUM Improves
Fee-earning AUM grew 13.8% year over year to $481.23 billion as of Mar 31, 2021. Total AUM amounted to $648.80 billion as of the same date, up 20.6% year over year. The rise in total AUM was largely driven by $31.6 billion of inflows.
As of Mar 31, 2021, undrawn capital available for investment was $148.2 billion.
Our Viewpoint
Growth in AUM, driven by inflows, is expected to continue aiding Blackstone’s top line in the near term. Also, the company is well-positioned to gain from its fund-raising ability. However, continuously increasing expenses are expected to hamper the bottom line to an extent in the near term.
Blackstone Group IncThe Price, Consensus and EPS Surprise
Blackstone Group IncThe price-consensus-eps-surprise-chart | Blackstone Group IncThe 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 & Upcoming Release Date of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2021 adjusted earnings of $7.77 per share outpaced the Zacks Consensus Estimate of $7.64. The figure reflects a rise of 17.7% from the year-ago quarter’s number.
Cohen & Steers’ (CNS - Free Report) first-quarter 2021 adjusted earnings of 79 cents per share lagged the Zacks Consensus Estimate of 81 cents. Nevertheless, the bottom line was 29.5% higher than the year-ago figure.
Invesco (IVZ - Free Report) is slated to release quarterly results on Apr 27.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>