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What's in the Cards for Blackstone (BX) in Q4 Earnings?
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Blackstone (BX - Free Report) is scheduled to report fourth-quarter and full-year 2023 results on Jan 25, before the opening bell. Its quarterly revenues are likely to have improved in the to-be-reported quarter, while earnings are expected to have declined on a year-over-year basis.
In the last reported quarter, the company’s earnings lagged the Zacks Consensus Estimate. Results were adversely impacted by lower segment revenues and a rise in GAAP expenses. Yet, an increase in assets under management (AUM) balance, mainly driven by decent inflows, was the tailwind.
Blackstone has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 2.12%.
The Zacks Consensus Estimate for Blackstone’s fourth-quarter earnings of 99 cents per share has been revised to 1% lower over the past seven days. The figure indicates a decline of 7.5% from the prior-year quarter’s reported number. Our estimate for distributable earnings is pinned at 96 cents.
The consensus estimate for sales is pegged at $2.48 billion, which suggests a rise of 5.7%. Our estimate for the metric is $2.47 billion.
Key Factors and Estimates for Q4
Blackstone has been witnessing increases in fee-earning AUM and total AUM on the back of its diversified product and revenue mix, a superior position in the alternative investments space, and net inflows.
Subdued market volatility and lower client activity in the fourth quarter because of concerns related to the economic slowdown, the Federal Reserve’s hawkish monetary policy and other geopolitical issues, Blackstone is expected to have hurt the AUM balance in the quarter, despite overall asset inflows.
The Zacks Consensus Estimate for AUM is pegged at $958.2 billion, which indicates a fall of 1.7% from the prior-year quarter. Our estimate for total AUM is pinned at $921.6 billion. The consensus estimate for total fee-earning AUM of $788.7 billion suggests a year-over-year rise of 9.8%.
The Zacks Consensus Estimate for net management and advisory fees (segment revenues) for the to-be-reported quarter is pegged at $1.61 billion, which indicates a decline of 2% from the prior-year quarter. Our estimate for the same is $1.18 billion.
The consensus estimate for fee-related performance revenues (segment revenues) of $363.8 million suggests a drastic jump from the prior-year quarter’s $172.7 million. Our estimate for the metric is pinned at $406.7 million.
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 franchises, expenses are expected to have risen to some extent in the fourth quarter. Our estimate for total expenses (GAAP basis) is pinned at $1.47 billion, implying a year-over-year jump of 36.9%.
Earnings Whispers
According to our quantitative model, the chances of Blackstone beating the Zacks Consensus Estimate this time are low. This 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 -2.16%.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).
Stocks That Warrant a Look
Here are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for SEI Investments Company (SEIC - Free Report) is +2.40% and carries a Zacks Rank #2 (Buy) at present. The company is expected to report fourth-quarter and full-year 2023 results on Jan 24.
Over the past 30 days, the Zacks Consensus Estimate for SEIC’s quarterly earnings has moved 2.3% north to 90 cents per share.
Image: Shutterstock
What's in the Cards for Blackstone (BX) in Q4 Earnings?
Blackstone (BX - Free Report) is scheduled to report fourth-quarter and full-year 2023 results on Jan 25, before the opening bell. Its quarterly revenues are likely to have improved in the to-be-reported quarter, while earnings are expected to have declined on a year-over-year basis.
In the last reported quarter, the company’s earnings lagged the Zacks Consensus Estimate. Results were adversely impacted by lower segment revenues and a rise in GAAP expenses. Yet, an increase in assets under management (AUM) balance, mainly driven by decent inflows, was the tailwind.
Blackstone has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 2.12%.
Blackstone Inc. Price and EPS Surprise
Blackstone Inc. price-eps-surprise | Blackstone Inc. Quote
The Zacks Consensus Estimate for Blackstone’s fourth-quarter earnings of 99 cents per share has been revised to 1% lower over the past seven days. The figure indicates a decline of 7.5% from the prior-year quarter’s reported number. Our estimate for distributable earnings is pinned at 96 cents.
The consensus estimate for sales is pegged at $2.48 billion, which suggests a rise of 5.7%. Our estimate for the metric is $2.47 billion.
Key Factors and Estimates for Q4
Blackstone has been witnessing increases in fee-earning AUM and total AUM on the back of its diversified product and revenue mix, a superior position in the alternative investments space, and net inflows.
Subdued market volatility and lower client activity in the fourth quarter because of concerns related to the economic slowdown, the Federal Reserve’s hawkish monetary policy and other geopolitical issues, Blackstone is expected to have hurt the AUM balance in the quarter, despite overall asset inflows.
The Zacks Consensus Estimate for AUM is pegged at $958.2 billion, which indicates a fall of 1.7% from the prior-year quarter. Our estimate for total AUM is pinned at $921.6 billion. The consensus estimate for total fee-earning AUM of $788.7 billion suggests a year-over-year rise of 9.8%.
The Zacks Consensus Estimate for net management and advisory fees (segment revenues) for the to-be-reported quarter is pegged at $1.61 billion, which indicates a decline of 2% from the prior-year quarter. Our estimate for the same is $1.18 billion.
The consensus estimate for fee-related performance revenues (segment revenues) of $363.8 million suggests a drastic jump from the prior-year quarter’s $172.7 million. Our estimate for the metric is pinned at $406.7 million.
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 franchises, expenses are expected to have risen to some extent in the fourth quarter. Our estimate for total expenses (GAAP basis) is pinned at $1.47 billion, implying a year-over-year jump of 36.9%.
Earnings Whispers
According to our quantitative model, the chances of Blackstone beating the Zacks Consensus Estimate this time are low. This 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 -2.16%.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).
Stocks That Warrant a Look
Here are a couple of finance stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this time:
The Earnings ESP for SEI Investments Company (SEIC - Free Report) is +2.40% and carries a Zacks Rank #2 (Buy) at present. The company is expected to report fourth-quarter and full-year 2023 results on Jan 24.
Over the past 30 days, the Zacks Consensus Estimate for SEIC’s quarterly earnings has moved 2.3% north to 90 cents per share.
Raymond James (RJF - Free Report) is scheduled to release quarterly numbers on Jan 24. The company has an Earnings ESP of +0.55% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
RJF’s quarterly earnings estimates have been revised upward by almost 1% to $2.25 over the past month.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.