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Blackstone (BX) Beats on Q3 Earnings & Revenues, Stock Up 1%
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Shares of The Blackstone Group L.P. (BX - Free Report) gained more than 1% in pre-market trading, following the release of the company’s third-quarter 2017 earnings. Economic net income (ENI) of 69 cents per share topped the Zacks Consensus Estimate of 57 cents. Also, the figure was 21% above the prior-year quarter level.
Improvement in revenues largely boosted earnings. Also, growth in assets under management (AUM) continued to impress. However, a rise in expenses was an undermining factor.
Blackstone reported ENI of $834.3 million, reflecting an increase 21% year over year.
Revenues & Costs Rise
Total revenues (GAAP basis) increased 22% year over year to $1.75 billion, primarily driven by a rise in performance fees as well as interest and dividend revenues. Also, the top line handily surpassed the Zacks Consensus Estimate of $1.42 billion.
Total expenses (GAAP basis) rose17% year over year to $903.8 million. The increase was primarily due to a drastic surge in fund expenses.
Fee-earning AUM grew 7% year over year to $285.7 billion. Total AUM amounted to $387.4 billion as of Sep 30, 2017, up 7% year over year. The rise in total AUM was largely driven by $62.4 billion of inflows.
As of Sep 30, 2017, Blackstone had $5 billion in total cash, cash equivalents and corporate treasury investments.
Our Viewpoint
Blackstone remains well positioned to capitalize on the changing investment landscape by making long-term investments and augmenting its fund-raising abilities. However, increased dependence on management and advisory fees can affect the company’s financials in the near term.
The Blackstone Group L.P. Price, Consensus and EPS Surprise
Performance of Other Investment Manager and Upcoming Releases
BlackRock, Inc. (BLK - Free Report) reported third-quarter 2017 adjusted earnings of $5.92 per share, which outpaced the Zacks Consensus Estimate of $5.59. Results benefited from improvement in revenues, rise in AUM and steady long-term inflows. However, increase in operating expenses acted as a headwind.
Among other investment managers, both Ameriprise Financial, Inc. (AMP - Free Report) and Waddell & Reed Financial, Inc. are slated to report results on Oct 24.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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Blackstone (BX) Beats on Q3 Earnings & Revenues, Stock Up 1%
Shares of The Blackstone Group L.P. (BX - Free Report) gained more than 1% in pre-market trading, following the release of the company’s third-quarter 2017 earnings. Economic net income (ENI) of 69 cents per share topped the Zacks Consensus Estimate of 57 cents. Also, the figure was 21% above the prior-year quarter level.
Improvement in revenues largely boosted earnings. Also, growth in assets under management (AUM) continued to impress. However, a rise in expenses was an undermining factor.
Blackstone reported ENI of $834.3 million, reflecting an increase 21% year over year.
Revenues & Costs Rise
Total revenues (GAAP basis) increased 22% year over year to $1.75 billion, primarily driven by a rise in performance fees as well as interest and dividend revenues. Also, the top line handily surpassed the Zacks Consensus Estimate of $1.42 billion.
Total expenses (GAAP basis) rose17% year over year to $903.8 million. The increase was primarily due to a drastic surge in fund expenses.
Fee-earning AUM grew 7% year over year to $285.7 billion. Total AUM amounted to $387.4 billion as of Sep 30, 2017, up 7% year over year. The rise in total AUM was largely driven by $62.4 billion of inflows.
As of Sep 30, 2017, Blackstone had $5 billion in total cash, cash equivalents and corporate treasury investments.
Our Viewpoint
Blackstone remains well positioned to capitalize on the changing investment landscape by making long-term investments and augmenting its fund-raising abilities. However, increased dependence on management and advisory fees can affect the company’s financials in the near term.
The Blackstone Group L.P. Price, Consensus and EPS Surprise
The Blackstone Group L.P. Price, Consensus and EPS Surprise | The Blackstone Group L.P. 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 of Other Investment Manager and Upcoming Releases
BlackRock, Inc. (BLK - Free Report) reported third-quarter 2017 adjusted earnings of $5.92 per share, which outpaced the Zacks Consensus Estimate of $5.59. Results benefited from improvement in revenues, rise in AUM and steady long-term inflows. However, increase in operating expenses acted as a headwind.
Among other investment managers, both Ameriprise Financial, Inc. (AMP - Free Report) and Waddell & Reed Financial, Inc. are slated to report results on Oct 24.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>