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Blackstone (BX) Stock Gains 2% Despite Q1 Earnings Miss
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Blackstone’s (BX - Free Report) first-quarter 2020 distributable earnings of 46 cents per share missed the Zacks Consensus Estimate of 49 cents. Nevertheless, the figure reflects an increase of 4.5% from the prior-year quarter.
Shares of Blackstone gained 2% in pre-market trading. Investors became optimistic as the company’s revenues and assets under management (AUM) witnessed growth. However, the full day’s trading will depict a better picture of the actual price performance.
The company recorded higher expenses in the quarter, which hurt results to some extent. However, higher revenues and growth in fee-earnings AUM as well as total AUM were positives.
Net loss attributable to Blackstone was $1.07 billion against net income of $481.3 million recorded in the year-ago quarter.
Revenues & AUM Improve, Expenses Rise
Total segment revenues were $1.14 billion, up 4.2% year over year. The top line lagged the Zacks Consensus Estimate of $1.31 billion. On a GAAP basis, the company recorded negative revenues of $3.08 billion against revenues of $2.02 billion reported in the prior-year quarter.
Total expenses (GAAP basis), excluding compensation and benefits costs, increased 6.7% year over year to $203.8 million.
Fee-earning AUM grew 19.8% year over year to $423.06 billion. Total AUM amounted to $538.01 billion as of Mar 31, 2020, up 5.1% year over year. The rise in total AUM was largely driven by $27.3 billion of inflows.
As of Mar 31, 2020, Blackstone had $4.2 billion in total cash, cash equivalents and corporate treasury investments, and $8 billion in cash and net investments.
Share Repurchase Update
The company repurchased 5 million shares in the quarter.
Our Viewpoint
Growth in AUM, driven by inflows, is expected to continue to aid Blackstone’s top line in the near term amid the coronavirus-induced slowdown. Moreover, the company is well-positioned to gain from its fund-raising ability and revenue mix. However, lower chances of sustainability of its capital-deployment activities remain a major near-term concern. Also, continuously increasing expenses are expected to hamper the bottom line to an extent in the near term.
Blackstone Group Inc/The Price, Consensus and EPS Surprise
Performance & Earnings Release Dates of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago quarter’s number.
While Affiliated Managers Group, Inc. (AMG - Free Report) is slated to announce results on Apr 27, Ares Management Corporation (ARES - Free Report) will report its numbers on May 6.
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Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Blackstone (BX) Stock Gains 2% Despite Q1 Earnings Miss
Blackstone’s (BX - Free Report) first-quarter 2020 distributable earnings of 46 cents per share missed the Zacks Consensus Estimate of 49 cents. Nevertheless, the figure reflects an increase of 4.5% from the prior-year quarter.
Shares of Blackstone gained 2% in pre-market trading. Investors became optimistic as the company’s revenues and assets under management (AUM) witnessed growth. However, the full day’s trading will depict a better picture of the actual price performance.
The company recorded higher expenses in the quarter, which hurt results to some extent. However, higher revenues and growth in fee-earnings AUM as well as total AUM were positives.
Net loss attributable to Blackstone was $1.07 billion against net income of $481.3 million recorded in the year-ago quarter.
Revenues & AUM Improve, Expenses Rise
Total segment revenues were $1.14 billion, up 4.2% year over year. The top line lagged the Zacks Consensus Estimate of $1.31 billion. On a GAAP basis, the company recorded negative revenues of $3.08 billion against revenues of $2.02 billion reported in the prior-year quarter.
Total expenses (GAAP basis), excluding compensation and benefits costs, increased 6.7% year over year to $203.8 million.
Fee-earning AUM grew 19.8% year over year to $423.06 billion. Total AUM amounted to $538.01 billion as of Mar 31, 2020, up 5.1% year over year. The rise in total AUM was largely driven by $27.3 billion of inflows.
As of Mar 31, 2020, Blackstone had $4.2 billion in total cash, cash equivalents and corporate treasury investments, and $8 billion in cash and net investments.
Share Repurchase Update
The company repurchased 5 million shares in the quarter.
Our Viewpoint
Growth in AUM, driven by inflows, is expected to continue to aid Blackstone’s top line in the near term amid the coronavirus-induced slowdown. Moreover, the company is well-positioned to gain from its fund-raising ability and revenue mix. However, lower chances of sustainability of its capital-deployment activities remain a major near-term concern. Also, continuously increasing expenses are expected to hamper the bottom line to an extent in the near term.
Blackstone Group Inc/The Price, Consensus and EPS Surprise
Blackstone Group Inc/The price-consensus-eps-surprise-chart | Blackstone Group Inc/The 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 Dates of Other Investment Managers
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago quarter’s number.
While Affiliated Managers Group, Inc. (AMG - Free Report) is slated to announce results on Apr 27, Ares Management Corporation (ARES - Free Report) will report its numbers on May 6.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>