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Blackstone (BX) Q1 Earnings Meet Estimates, Revenues Down Y/Y
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Blackstone’s (BX - Free Report) first-quarter 2023 distributable earnings of 97 cents per share were in line with the Zacks Consensus Estimate. The figure, however, reflects a decline of 37% from the prior-year quarter. Our estimate for the metric was 96 cents per share.
Results primarily benefited from a rise in assets under management (AUM) balance, mainly driven by decent inflows and lower expenses. However, a tough operating environment hurt performance fees and management fees, which led to a fall in revenues.
Net income attributable to Blackstone was $85.8 million compared with $1.22 billion in the year-ago quarter.
Segment Revenues, Expenses Decline
Total segment revenues were $2.49 billion, down 29% year over year. The top line beat the Zacks Consensus Estimate of $2.44 billion. We had projected total segment revenues of $2.27 billion.
On a GAAP basis, revenues were $1.38 billion, plunging 73%.
Total expenses (GAAP basis) were $1.19 billion, down 46%. The decline was due to a fall in total compensation and benefits costs.
As of Mar 31, 2023, Blackstone had $8.1 billion in total cash, cash equivalents and corporate treasury investments and $16.8 billion in cash and net investments. The company has a $4.1 billion credit revolver.
AUM Improves
Fee-earning AUM grew 8% year over year to $732 billion as of Mar 31, 2023. Total AUM amounted to $991.3 billion as of the same date, up 8%. The rise in total AUM was primarily driven by $40.4 billion in inflows during the reported quarter.
We had projected fee-earning AUM and total AUM of $718.3 billion and $975.9 billion, respectively.
As of Mar 31, 2023, the undrawn capital available for investment was $193.9 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, high expenses and a challenging operating backdrop are expected to hurt the bottom line in the near term.
Performance & Earnings Release Date of Other Asset Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
Results have benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were major headwinds for BLK.
Invesco’s (IVZ - Free Report) is slated to announce first quarter 2023 numbers on Apr 25.
Over the past week, the Zacks Consensus Estimate for Invesco’s quarterly earnings has moved 2.9% north to 35 cents, implying a 37.5% decline from the prior-year reported number.
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Blackstone (BX) Q1 Earnings Meet Estimates, Revenues Down Y/Y
Blackstone’s (BX - Free Report) first-quarter 2023 distributable earnings of 97 cents per share were in line with the Zacks Consensus Estimate. The figure, however, reflects a decline of 37% from the prior-year quarter. Our estimate for the metric was 96 cents per share.
Results primarily benefited from a rise in assets under management (AUM) balance, mainly driven by decent inflows and lower expenses. However, a tough operating environment hurt performance fees and management fees, which led to a fall in revenues.
Net income attributable to Blackstone was $85.8 million compared with $1.22 billion in the year-ago quarter.
Segment Revenues, Expenses Decline
Total segment revenues were $2.49 billion, down 29% year over year. The top line beat the Zacks Consensus Estimate of $2.44 billion. We had projected total segment revenues of $2.27 billion.
On a GAAP basis, revenues were $1.38 billion, plunging 73%.
Total expenses (GAAP basis) were $1.19 billion, down 46%. The decline was due to a fall in total compensation and benefits costs.
As of Mar 31, 2023, Blackstone had $8.1 billion in total cash, cash equivalents and corporate treasury investments and $16.8 billion in cash and net investments. The company has a $4.1 billion credit revolver.
AUM Improves
Fee-earning AUM grew 8% year over year to $732 billion as of Mar 31, 2023. Total AUM amounted to $991.3 billion as of the same date, up 8%. The rise in total AUM was primarily driven by $40.4 billion in inflows during the reported quarter.
We had projected fee-earning AUM and total AUM of $718.3 billion and $975.9 billion, respectively.
As of Mar 31, 2023, the undrawn capital available for investment was $193.9 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, high expenses and a challenging operating backdrop are expected to hurt the bottom line 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 Asset Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
Results have benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were major headwinds for BLK.
Invesco’s (IVZ - Free Report) is slated to announce first quarter 2023 numbers on Apr 25.
Over the past week, the Zacks Consensus Estimate for Invesco’s quarterly earnings has moved 2.9% north to 35 cents, implying a 37.5% decline from the prior-year reported number.