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Blackstone’s (BX - Free Report) first-quarter 2022 distributable earnings of $1.55 per share comfortably surpassed the Zacks Consensus Estimate of $1.08. The figure reflects a rise of 61.5% from the prior-year quarter.
Results primarily benefited from an improvement in revenues. A rise in the assets under management (AUM) balance, mainly driven by inflows, was another positive for the company. However, higher operating expenses hurt results to some extent. Probably because of this, shares of the company lost 6.5% following the release.
Net income attributable to Blackstone was $1.22 billion, down 30.4% from the year-ago quarter.
Segmental Revenues Improve, Expenses Rise
Total segmental revenues were $3.50 billion, up 71.1% year over year. The reported figure surpassed the Zacks Consensus Estimate of $2.65 billion. On a GAAP basis, revenues were $5.13 billion, down 3.3% from the prior-year quarter.
Total expenses (GAAP basis) were $2.20 billion, increasing 7.1% from the year-ago quarter. All expense components, except for fund expenses, witnessed an increase.
As of Mar 31, 2022, Blackstone had $8.8 billion in total cash, cash equivalents and corporate treasury investments, as well as $20.6 billion in cash and net investments. Further, the company has a $2.3-billion credit revolver.
AUM Improves
Fee-earning AUM grew 40.9% year over year to $677.9 billion as of Mar 31, 2022. Total AUM amounted to $915.49 billion as of the same date, up 41.1% year over year. The rise in total AUM was largely driven by $49.9 billion of inflows.
As of Mar 31, 2022, undrawn capital available for investment was $139.3 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.
Performance & Earnings Release Date of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2022 adjusted earnings of $9.52 per share outpaced the Zacks Consensus Estimate of $8.92. The figure reflects a rise of 18.4% from the year-ago quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in the AUM balance.
Invesco Ltd. (IVZ - Free Report) is scheduled to release quarterly numbers on Apr 26.
Over the past 30 days, the Zacks Consensus Estimate for Invesco’s quarterly earnings has moved 7.2% lower to 64 cents. This suggests a 5.9% decrease from the prior-year quarter.
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Blackstone (BX) Stock Dips Despite Q1 Earnings Beat, AUM Rises
Blackstone’s (BX - Free Report) first-quarter 2022 distributable earnings of $1.55 per share comfortably surpassed the Zacks Consensus Estimate of $1.08. The figure reflects a rise of 61.5% from the prior-year quarter.
Results primarily benefited from an improvement in revenues. A rise in the assets under management (AUM) balance, mainly driven by inflows, was another positive for the company. However, higher operating expenses hurt results to some extent. Probably because of this, shares of the company lost 6.5% following the release.
Net income attributable to Blackstone was $1.22 billion, down 30.4% from the year-ago quarter.
Segmental Revenues Improve, Expenses Rise
Total segmental revenues were $3.50 billion, up 71.1% year over year. The reported figure surpassed the Zacks Consensus Estimate of $2.65 billion. On a GAAP basis, revenues were $5.13 billion, down 3.3% from the prior-year quarter.
Total expenses (GAAP basis) were $2.20 billion, increasing 7.1% from the year-ago quarter. All expense components, except for fund expenses, witnessed an increase.
As of Mar 31, 2022, Blackstone had $8.8 billion in total cash, cash equivalents and corporate treasury investments, as well as $20.6 billion in cash and net investments. Further, the company has a $2.3-billion credit revolver.
AUM Improves
Fee-earning AUM grew 40.9% year over year to $677.9 billion as of Mar 31, 2022. Total AUM amounted to $915.49 billion as of the same date, up 41.1% year over year. The rise in total AUM was largely driven by $49.9 billion of inflows.
As of Mar 31, 2022, undrawn capital available for investment was $139.3 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-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 & Earnings Release Date of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2022 adjusted earnings of $9.52 per share outpaced the Zacks Consensus Estimate of $8.92. The figure reflects a rise of 18.4% from the year-ago quarter.
BLK’s results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, long-term net inflows supported growth in the AUM balance.
Invesco Ltd. (IVZ - Free Report) is scheduled to release quarterly numbers on Apr 26.
Over the past 30 days, the Zacks Consensus Estimate for Invesco’s quarterly earnings has moved 7.2% lower to 64 cents. This suggests a 5.9% decrease from the prior-year quarter.