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Blackstone (BX) Q1 Earnings Meet Estimates, AUM Balance Up
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Blackstone’s (BX - Free Report) first-quarter 2024 distributable earnings of 98 cents per share were in line with the Zacks Consensus Estimate. The figure reflected a rise of 1% from the prior-year quarter.
Additionally, total segment revenues were $2.55 billion, up 3% year over year. The top line outpaced the Zacks Consensus Estimate of $2.51 billion. Also, on a GAAP basis, BX’s revenues were $3.69 billion, up significantly from $1.38 billion in the prior-year quarter.
The increase in revenues was largely driven by a solid improvement in total assets under management (AUM) and fee-earning AUM during the quarter.
Stephen A. Schwarzman, Chairman and CEO, said, “Blackstone reported strong first-quarter results, highlighted by accelerating momentum in our private credit and private wealth businesses. We are seeing a strengthening transaction environment and attractive opportunities to deploy capital.”
The rise in AUM balance was driven by a robust equity market performance in the first quarter. As the market participants turned bullish on the expectations of interest rate cuts this year, the global equity markets rallied.
As of Mar 31, 2024, BX’s fee-earning AUM grew 7% year over year to $781.4 billion. Total AUM was also up 7% to $1.06 trillion.
Further, Blackstone recorded net inflows of $34 billion in the quarter. As of Mar 31, 2024, the undrawn capital available for investment was $191.2 billion.
Driven by improvement in AUM balance and solid quarterly inflows, the company’s net management and advisory fees (the largest component of GAAP revenues) rose 4.2% to $1.73 billion in the first quarter.
Also, as the overall macroeconomic backdrop turned slightly bullish, the company’s total investment income was $1.64 billion in the quarter. In the first quarter of 2023, the company had incurred total investment loss of $495.7 million.
In the first quarter of 2024, Blackstone’s total expenses (GAAP basis) were $1.79 billion, up 51% year over year. The primary reason behind the jump in expenses was a 71% surge in compensation and benefits costs.
Further, as of Mar 31, 2024, this Zacks Rank #3 (Hold) company had $8.4 billion in total cash, cash equivalents and corporate treasury investments, and $17.3 billion in cash and net investments. The company has a $4.3-billion undrawn credit revolver. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Invesco (IVZ - Free Report) is scheduled to announce first-quarter 2024 numbers on Apr 23. It has a Zacks Rank of 2 (Buy).
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been raised 2.6% to 40 cents. Also, the figure implies a rise of 5.3% from the prior-year reported number.
T. Rowe Price Group, Inc. (TROW - Free Report) is slated to report first-quarter 2024 results on Apr 26. The stock also sports a Zack Rank #1.
Over the past 30 days, the Zacks Consensus Estimate for TROW’s quarterly earnings has moved 6.4% upward to $1.99. The figure indicates 17.8% growth from the prior-year quarter.
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Blackstone (BX) Q1 Earnings Meet Estimates, AUM Balance Up
Blackstone’s (BX - Free Report) first-quarter 2024 distributable earnings of 98 cents per share were in line with the Zacks Consensus Estimate. The figure reflected a rise of 1% from the prior-year quarter.
Additionally, total segment revenues were $2.55 billion, up 3% year over year. The top line outpaced the Zacks Consensus Estimate of $2.51 billion. Also, on a GAAP basis, BX’s revenues were $3.69 billion, up significantly from $1.38 billion in the prior-year quarter.
The increase in revenues was largely driven by a solid improvement in total assets under management (AUM) and fee-earning AUM during the quarter.
Stephen A. Schwarzman, Chairman and CEO, said, “Blackstone reported strong first-quarter results, highlighted by accelerating momentum in our private credit and private wealth businesses. We are seeing a strengthening transaction environment and attractive opportunities to deploy capital.”
Blackstone Inc. Price, Consensus and EPS Surprise
Blackstone Inc. price-consensus-eps-surprise-chart | Blackstone Inc. Quote
Higher AUM Drives Revenues
The rise in AUM balance was driven by a robust equity market performance in the first quarter. As the market participants turned bullish on the expectations of interest rate cuts this year, the global equity markets rallied.
As of Mar 31, 2024, BX’s fee-earning AUM grew 7% year over year to $781.4 billion. Total AUM was also up 7% to $1.06 trillion.
Further, Blackstone recorded net inflows of $34 billion in the quarter. As of Mar 31, 2024, the undrawn capital available for investment was $191.2 billion.
Driven by improvement in AUM balance and solid quarterly inflows, the company’s net management and advisory fees (the largest component of GAAP revenues) rose 4.2% to $1.73 billion in the first quarter.
Also, as the overall macroeconomic backdrop turned slightly bullish, the company’s total investment income was $1.64 billion in the quarter. In the first quarter of 2023, the company had incurred total investment loss of $495.7 million.
In the first quarter of 2024, Blackstone’s total expenses (GAAP basis) were $1.79 billion, up 51% year over year. The primary reason behind the jump in expenses was a 71% surge in compensation and benefits costs.
Further, as of Mar 31, 2024, this Zacks Rank #3 (Hold) company had $8.4 billion in total cash, cash equivalents and corporate treasury investments, and $17.3 billion in cash and net investments. The company has a $4.3-billion undrawn credit revolver. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Earnings Releases & Earnings Expectations
Invesco (IVZ - Free Report) is scheduled to announce first-quarter 2024 numbers on Apr 23. It has a Zacks Rank of 2 (Buy).
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been raised 2.6% to 40 cents. Also, the figure implies a rise of 5.3% from the prior-year reported number.
T. Rowe Price Group, Inc. (TROW - Free Report) is slated to report first-quarter 2024 results on Apr 26. The stock also sports a Zack Rank #1.
Over the past 30 days, the Zacks Consensus Estimate for TROW’s quarterly earnings has moved 6.4% upward to $1.99. The figure indicates 17.8% growth from the prior-year quarter.