Blackstone (BX) Q2 Earnings Miss, Stock Dips as Costs Rise

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Blackstone’s BX second-quarter 2024 distributable earnings of 96 cents per share lagged the Zacks Consensus Estimate of 99 cents. The figure reflects a decline of 3.2% from the prior-year quarter.

Shares of the company lost 1.5% in the pre-market trading. However, a full day’s trading session will depict a clearer picture.

Results were primarily hurt by an increase in GAAP expenses. Nevertheless, a rise in segment revenues and improvement in the assets under management (AUM) balance were tailwinds.

Net income attributable to Blackstone was $444.4 million compared with $601.3 million in the year-ago quarter.

Segment Revenues Improve, GAAP Expenses Rise

Total segment revenues were $2.52 billion, up 7% year over year. The top line outpaced the Zacks Consensus Estimate of $2.51 billion.

On a GAAP basis, revenues were $2.80 billion, down marginally year over year.

Total expenses (GAAP basis) were $1.63 billion, up 10.7% year over year.

As of Jun 30, 2024, Blackstone had $8.7 billion in total cash, cash equivalents and corporate treasury investments, and $17.7 billion in cash and net investments. The company has a $4.3-billion undrawn credit revolver.

AUM Rises

Fee-earning AUM grew 11% year over year to $808.7 billion as of Jun 30, 2024.

The total AUM amounted to $1.08 trillion as of the same date, up 7% year over year. The rise in total AUM was primarily driven by $39.4 billion in inflows in the reported quarter.

As of Jun 30, 2024, the undrawn capital available for investment was $181 billion.

Our Take

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 and EPS Surprise

Blackstone Inc. price-consensus-eps-surprise-chart | Blackstone Inc. Quote

 

Currently, Blackstone carries a Zacks Rank #4 (Sell).

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 second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflects a rise of 12% from the year-ago quarter.

BLK’s results benefited from a rise in revenues. AUM witnessed solid improvement driven by net inflows and market appreciation. However, higher expenses and a fall in non-operating income acted as headwinds for BLK.

Invesco IVZ is scheduled to announce second-quarter 2024 numbers on Jul 23.

Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been unchanged at 41 cents. Also, the figure implies a jump of 32.3% from the prior-year reported number.