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Blackstone (BX) Stock Up 4.1% on Q2 Earnings Beat, AUM Up Y/Y
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Shares of Blackstone (BX - Free Report) gained 4.1%, following the release of its second-quarter 2021 results. Distributable earnings of 82 cents per share surpassed the Zacks Consensus Estimate of 80 cents. The figure reflects a rise of 90.7% 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 were the undermining factor.
Net income attributable to Blackstone was $1.31 billion, up significantly from $568.3 million recorded in the year-ago quarter.
Segment Revenues Improve, Expenses Rise
Total quarterly segment revenues were $2.12 billion, jumping 90.3% year over year. The reported figure surpassed the Zacks Consensus Estimate of $1.94 billion. On a GAAP basis, revenues were $5.29 billion, up significantly from $2.52 billion reported in the prior-year quarter.
Total expenses (GAAP basis) were $2.27 billion, increasing 93.8% from the year-ago quarter. A rise in all expense components, except for fund expenses led to the increase.
As of Jun 30, 2021, Blackstone had $5.1 billion in total cash, cash equivalents and corporate treasury investments as well as $14.5 billion in cash and net investments. Further, the company has a $2.3-billion undrawn credit revolver.
AUM Improves
Fee-earning AUM grew 14.5% year over year to $498.93 billion as of Jun 30, 2021. Total AUM amounted to $684.03 billion as of the same date, up 21.2% year over year. The rise in total AUM was largely driven by $37.3 billion of inflows.
As of Jun 30, 2021, undrawn capital available for investment was $129.9 billion.
Conclusion
On Jul 14, Blackstone agreed to acquire a 9.9% stake in AIG’s Life & Retirement business for $2.2 billion in cash. Also, AIG agreed to enter a long-term strategic asset management relationship with Blackstone to manage an initial $50 billion of Life & Retirement’s existing investment portfolio upon the closing of the equity investment.
Notably, 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.
Blackstone Group Inc The Price, Consensus and EPS Surprise
Performance & Upcoming Release Dates of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) second-quarter 2021 adjusted earnings of $10.03 per share outpaced the Zacks Consensus Estimate of $9.24. The figure reflects a rise of 27.8 % from the year-ago quarter’s number.
Ameriprise Financial, Inc. (AMP - Free Report) and Invesco Ltd. (IVZ - Free Report) will release quarterly numbers on Jul 26 and Jul 27, respectively.
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Blackstone (BX) Stock Up 4.1% on Q2 Earnings Beat, AUM Up Y/Y
Shares of Blackstone (BX - Free Report) gained 4.1%, following the release of its second-quarter 2021 results. Distributable earnings of 82 cents per share surpassed the Zacks Consensus Estimate of 80 cents. The figure reflects a rise of 90.7% 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 were the undermining factor.
Net income attributable to Blackstone was $1.31 billion, up significantly from $568.3 million recorded in the year-ago quarter.
Segment Revenues Improve, Expenses Rise
Total quarterly segment revenues were $2.12 billion, jumping 90.3% year over year. The reported figure surpassed the Zacks Consensus Estimate of $1.94 billion. On a GAAP basis, revenues were $5.29 billion, up significantly from $2.52 billion reported in the prior-year quarter.
Total expenses (GAAP basis) were $2.27 billion, increasing 93.8% from the year-ago quarter. A rise in all expense components, except for fund expenses led to the increase.
As of Jun 30, 2021, Blackstone had $5.1 billion in total cash, cash equivalents and corporate treasury investments as well as $14.5 billion in cash and net investments. Further, the company has a $2.3-billion undrawn credit revolver.
AUM Improves
Fee-earning AUM grew 14.5% year over year to $498.93 billion as of Jun 30, 2021. Total AUM amounted to $684.03 billion as of the same date, up 21.2% year over year. The rise in total AUM was largely driven by $37.3 billion of inflows.
As of Jun 30, 2021, undrawn capital available for investment was $129.9 billion.
Conclusion
On Jul 14, Blackstone agreed to acquire a 9.9% stake in AIG’s Life & Retirement business for $2.2 billion in cash. Also, AIG agreed to enter a long-term strategic asset management relationship with Blackstone to manage an initial $50 billion of Life & Retirement’s existing investment portfolio upon the closing of the equity investment.
Notably, 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.
Blackstone Group Inc The 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 Dates of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) second-quarter 2021 adjusted earnings of $10.03 per share outpaced the Zacks Consensus Estimate of $9.24. The figure reflects a rise of 27.8 % from the year-ago quarter’s number.
Ameriprise Financial, Inc. (AMP - Free Report) and Invesco Ltd. (IVZ - Free Report) will release quarterly numbers on Jul 26 and Jul 27, respectively.