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Blackstone’s (BX - Free Report) second-quarter 2022 distributable earnings of $1.49 per share surpassed the Zacks Consensus Estimate of $1.47. The figure reflects a rise of 81.7% from the prior-year quarter.
Results primarily benefited from an improvement in segment revenues and a decline in expenses. A rise in the assets under management (AUM) balance, mainly driven by inflows, was another positive for the company. However, revenues (on a GAAP basis) declined, which hurt the results to some extent. Probably because of this, shares of the company lost 4.6% following the release.
The net loss attributable to Blackstone was $29.4 million against net income of $1.31 billion in the year-ago quarter.
Segmental Revenues Improve, Expenses Decline
Total segmental revenues were $4.15 billion, up 96.1% year over year. The reported figure surpassed the Zacks Consensus Estimate of $3.46 billion. On a GAAP basis, revenues were $629.2 million, down 88.1% from the prior-year quarter.
Total expenses (GAAP basis) were $744.1 million, down 67.3% from the year-ago quarter. The decline was due to a fall in total compensation and benefits costs. In the reported quarter, the company recorded negative unrealized performance allocation compensation costs.
As of Jun 30, 2022, Blackstone had $10 billion in total cash, cash equivalents and corporate treasury investments, as well as $19.8 billion in cash and net investments. The company has a $4.1-billion credit revolver.
AUM Improves
Fee-earning AUM grew 37.1% year over year to $683.8 billion as of Jun 30, 2022. Total AUM amounted to $940.8 billion as of the same date, up 37.5% year over year. The rise in total AUM was largely driven by $88.3 billion of inflows.
As of Jun 30, 2022, undrawn capital available for investment was $170.1 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, elevated expenses are expected to hamper the bottom line to an extent in the near term.
Performance & Earnings Release Date of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) second-quarter 2022 adjusted earnings of $7.36 per share missed the Zacks Consensus Estimate of $8.33. The figure reflects a decline of 30% from the year-ago quarter.
BLK’s results were adversely impacted by an unfavorable operating backdrop, leading to lower revenues and AUM balance. A modest decline in expenses was a tailwind.
Invesco Ltd. (IVZ - Free Report) is scheduled to announce second-quarter 2022 numbers on Jul 27.
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has moved 13.3% south to 52 cents, implying a 33.3% decline from the prior-year reported number.
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Blackstone (BX) Stock Dips Despite Q2 Earnings Beat, AUM Rises
Blackstone’s (BX - Free Report) second-quarter 2022 distributable earnings of $1.49 per share surpassed the Zacks Consensus Estimate of $1.47. The figure reflects a rise of 81.7% from the prior-year quarter.
Results primarily benefited from an improvement in segment revenues and a decline in expenses. A rise in the assets under management (AUM) balance, mainly driven by inflows, was another positive for the company. However, revenues (on a GAAP basis) declined, which hurt the results to some extent. Probably because of this, shares of the company lost 4.6% following the release.
The net loss attributable to Blackstone was $29.4 million against net income of $1.31 billion in the year-ago quarter.
Segmental Revenues Improve, Expenses Decline
Total segmental revenues were $4.15 billion, up 96.1% year over year. The reported figure surpassed the Zacks Consensus Estimate of $3.46 billion. On a GAAP basis, revenues were $629.2 million, down 88.1% from the prior-year quarter.
Total expenses (GAAP basis) were $744.1 million, down 67.3% from the year-ago quarter. The decline was due to a fall in total compensation and benefits costs. In the reported quarter, the company recorded negative unrealized performance allocation compensation costs.
As of Jun 30, 2022, Blackstone had $10 billion in total cash, cash equivalents and corporate treasury investments, as well as $19.8 billion in cash and net investments. The company has a $4.1-billion credit revolver.
AUM Improves
Fee-earning AUM grew 37.1% year over year to $683.8 billion as of Jun 30, 2022. Total AUM amounted to $940.8 billion as of the same date, up 37.5% year over year. The rise in total AUM was largely driven by $88.3 billion of inflows.
As of Jun 30, 2022, undrawn capital available for investment was $170.1 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, elevated expenses are expected to hamper the bottom line to an extent 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 Investment Managers
BlackRock, Inc.’s (BLK - Free Report) second-quarter 2022 adjusted earnings of $7.36 per share missed the Zacks Consensus Estimate of $8.33. The figure reflects a decline of 30% from the year-ago quarter.
BLK’s results were adversely impacted by an unfavorable operating backdrop, leading to lower revenues and AUM balance. A modest decline in expenses was a tailwind.
Invesco Ltd. (IVZ - Free Report) is scheduled to announce second-quarter 2022 numbers on Jul 27.
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has moved 13.3% south to 52 cents, implying a 33.3% decline from the prior-year reported number.