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Inflows, Asset Growth to Aid Blackstone's (BX) Q1 Earnings
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Blackstone (BX - Free Report) is scheduled to report first-quarter 2022 results on Apr 21, before the opening bell. Its revenues and earnings are likely to have increased in the to-be-reported quarter on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results primarily benefited from an improvement in revenues. A rise in assets under management (AUM) balance, mainly driven by inflows, was a positive.
Blackstone has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 25.3%.
Business prospects and activities of the company in the first quarter did not win analysts’ confidence. As a result, the Zacks Consensus Estimate for its first-quarter earnings of $1.10 per share has been unchanged over the past seven days. The figure indicates a rise of 14.6% from the prior-year quarter.
The consensus estimate for sales is pegged at $2.67 billion, which suggests an increase of 30.7% from the year-ago quarter’s reported figure.
Now, let’s check the factors that are expected to have influenced the company’s first-quarter performance.
Key Factors and Estimates for Q1
Blackstone has been witnessing a rise in fee-earning AUM and total AUM for the past few years on the back of its diversified product and revenue mix, a superior position in the alternative investments space, and net inflows. A similar trend is likely to have continued in the to-be-reported quarter.
The first quarter began with the expectations of trading volumes declining to levels seen during the pre-pandemic era. However, the ongoing Russia-Ukraine conflict, and prospects of multiple and bigger rate hikes by the Federal Reserve to control the raging inflation led to an unexpected increase in client activity and trading volumes. Moreover, the quarter witnessed overall asset inflows, which are expected to have aided Blackstone’s AUM growth.
The Zacks Consensus Estimate for Blackstone’s first-quarter AUM is pegged at $922 billion, which indicates a rise of 4.7% from the previous quarter’s reported figure. Also, the consensus estimate for total fee-earning AUM of $670 billion suggests a sequential rise of 3.1%.
The Zacks Consensus Estimate for net management and advisory fees (segment revenues) for the to-be-reported quarter is pegged at $1.59 billion, which indicates a rise of 9.1% from the prior quarter.
The consensus estimate for fee-related performance revenues (segment revenues) of $68 million suggests a decline of 96.1% sequentially.
Blackstone’s expenses have been elevated over the past few years mainly because of higher general, administrative and other expenses. As the company has been continuing to make investments in franchise, expenses are expected to have risen to some extent in the first quarter.
Here is what our quantitative model predicts:
According to our quantitative model, the chances of Blackstone beating the Zacks Consensus Estimate this time are low. That is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Blackstone is -0.91%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks That Warrant a Look
A couple of finance stocks, which you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Associated Bancorp (ASB - Free Report) and Independent Bank Corporation (IBCP - Free Report) .
The Earnings ESP for ASB is +0.81%. The company carries a Zacks Rank #2 (Buy) at present. ASB is slated to report results on Apr 21.
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Inflows, Asset Growth to Aid Blackstone's (BX) Q1 Earnings
Blackstone (BX - Free Report) is scheduled to report first-quarter 2022 results on Apr 21, before the opening bell. Its revenues and earnings are likely to have increased in the to-be-reported quarter on a year-over-year basis.
In the last reported quarter, the company’s earnings surpassed the Zacks Consensus Estimate. Results primarily benefited from an improvement in revenues. A rise in assets under management (AUM) balance, mainly driven by inflows, was a positive.
Blackstone has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 25.3%.
Blackstone Inc. Price and EPS Surprise
Blackstone Inc. price-eps-surprise | Blackstone Inc. Quote
Business prospects and activities of the company in the first quarter did not win analysts’ confidence. As a result, the Zacks Consensus Estimate for its first-quarter earnings of $1.10 per share has been unchanged over the past seven days. The figure indicates a rise of 14.6% from the prior-year quarter.
The consensus estimate for sales is pegged at $2.67 billion, which suggests an increase of 30.7% from the year-ago quarter’s reported figure.
Now, let’s check the factors that are expected to have influenced the company’s first-quarter performance.
Key Factors and Estimates for Q1
Blackstone has been witnessing a rise in fee-earning AUM and total AUM for the past few years on the back of its diversified product and revenue mix, a superior position in the alternative investments space, and net inflows. A similar trend is likely to have continued in the to-be-reported quarter.
The first quarter began with the expectations of trading volumes declining to levels seen during the pre-pandemic era. However, the ongoing Russia-Ukraine conflict, and prospects of multiple and bigger rate hikes by the Federal Reserve to control the raging inflation led to an unexpected increase in client activity and trading volumes. Moreover, the quarter witnessed overall asset inflows, which are expected to have aided Blackstone’s AUM growth.
The Zacks Consensus Estimate for Blackstone’s first-quarter AUM is pegged at $922 billion, which indicates a rise of 4.7% from the previous quarter’s reported figure. Also, the consensus estimate for total fee-earning AUM of $670 billion suggests a sequential rise of 3.1%.
The Zacks Consensus Estimate for net management and advisory fees (segment revenues) for the to-be-reported quarter is pegged at $1.59 billion, which indicates a rise of 9.1% from the prior quarter.
The consensus estimate for fee-related performance revenues (segment revenues) of $68 million suggests a decline of 96.1% sequentially.
Blackstone’s expenses have been elevated over the past few years mainly because of higher general, administrative and other expenses. As the company has been continuing to make investments in franchise, expenses are expected to have risen to some extent in the first quarter.
Here is what our quantitative model predicts:
According to our quantitative model, the chances of Blackstone beating the Zacks Consensus Estimate this time are low. That is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and Zacks Rank #3 (Hold) or better.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for Blackstone is -0.91%.
Zacks Rank: The company currently carries a Zacks Rank #3.
Stocks That Warrant a Look
A couple of finance stocks, which you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases per our model, are Associated Bancorp (ASB - Free Report) and Independent Bank Corporation (IBCP - Free Report) .
The Earnings ESP for ASB is +0.81%. The company carries a Zacks Rank #2 (Buy) at present. ASB is slated to report results on Apr 21.
IBCP is scheduled to release quarterly results on Apr 26. IBCP currently has a Zacks Rank #2 and an Earnings ESP of +10.00%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.