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Blackstone (BX) Stock Rises 3% on Q3 Earnings Beat, AUM Up Y/Y

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Shares of Blackstone (BX - Free Report) gained 3%, following the release of its third-quarter 2021 results. Distributable earnings of $1.28 per share comfortably surpassed the Zacks Consensus Estimate of 93 cents. The figure reflects a significant rise from 63 cents recorded in the prior-year quarter.

Results for the quarter primarily benefited from a significant 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 $1.40 billion, up from $794.7 million recorded in the year-ago quarter.

Segment Revenues Improve, Expenses Rise

Total quarterly segment revenues were $3.04 billion, up significantly year over year. The reported figure surpassed the Zacks Consensus Estimate of $2.22 billion. On a GAAP basis, revenues were $6.22 billion, up significantly from $3.03 billion reported in the prior-year quarter.

Total expenses (GAAP basis) were $2.65 billion, increasing 99.1% from the year-ago quarter. A rise in all expense components, except for fund expenses, led to the increase.

As of Sep 30, 2021, Blackstone had $8.2 billion in total cash, cash equivalents and corporate treasury investments as well as $18.4 billion in cash and net investments. Further, the company has a $2.3-billion undrawn credit revolver.

AUM Improves

Fee-earning AUM grew 18.9% year over year to $528.41 billion as of Sep 30, 2021. Total AUM amounted to $730.66 billion as of the same date, up 25% year over year. The rise in total AUM was largely driven by $46.7 billion of inflows.

As of Sep 30, 2021, undrawn capital available for investment was $127.2 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.

Blackstone Inc. Price, Consensus and EPS Surprise

 

Blackstone Inc. Price, Consensus and EPS Surprise

Blackstone Inc. price-consensus-eps-surprise-chart | Blackstone Inc. 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) third-quarter 2021 adjusted earnings of $10.95 per share outpaced the Zacks Consensus Estimate of $9.63. The figure reflects a rise of 18.8% from the year-ago quarter’s number.

Ameriprise Financial, Inc. (AMP - Free Report) and Invesco Ltd. (IVZ - Free Report) will release quarterly numbers on Oct 26.


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