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Blackstone's Q3 Earnings Beat, Stock Gains on Higher Revenues, AUM

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Blackstone’s (BX - Free Report) third-quarter 2024 distributable earnings of $1.01 per share outpaced the Zacks Consensus Estimate of 91 cents. The figure reflects a rise of 7% from the prior-year quarter.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

Shares of the company gained 3.2% in the pre-market trading. Better-than-expected results fueled by solid assets under management (AUM) growth drove investor optimism about the stock.

Results benefited from higher revenues and an improvement in AUM balance. However, an increase in GAAP expenses acted as a headwind.

Net income attributable to Blackstone was $780.8 million compared with $552 million in the year-ago quarter.

BX’s Segment Revenues Improve, GAAP Expenses Rise

Total segment revenues were $2.43 billion, up 5% year over year. The top line lagged the Zacks Consensus Estimate of $2.48 billion.

On a GAAP basis, revenues were $3.66 billion, jumping 44% year over year.

Total expenses (GAAP basis) were $1.9 billion, which surged 38% year over year.

As of Sept. 30, 2024, Blackstone had $8.9 billion in total cash, cash equivalents and corporate treasury investments, and $18.7 billion in cash and net investments. The company has a $4.3-billion undrawn credit revolver.

Blackstone’s AUM Balance Rises

Fee-earning AUM grew 12% year over year to $820.5 billion as of Sept. 30, 2024.

The total AUM amounted to $1.11 trillion as of the same date, up 10%. The rise in total AUM was primarily driven by $40.5 billion in inflows in the reported quarter.

As of Sept. 30, 2024, the undrawn capital available for investment was $171.6 billion.

Our Take on Blackstone

Blackstone is 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 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.

Earnings Dates & Expectations of BX’s Peers

Invesco (IVZ - Free Report) is scheduled to announce third-quarter 2024 numbers on Oct. 22.

Over the past week, the Zacks Consensus Estimate for IVZ’s quarterly earnings has moved 2.3% north to 44 cents. Also, the figure implies a jump of 25.7% from the prior-year reported number.

T. Rowe Price Group, Inc. (TROW - Free Report) is slated to report third-quarter 2024 results on Nov. 1.

Over the past seven days, the Zacks Consensus Estimate for TROW’s quarterly earnings has been revised almost 1% upward to $2.33. The figure indicates 7.4% growth from the prior-year quarter.


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