Have you been eager to see how The Blackstone Group L.P. BX performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based premier global investment and advisory firm’s earnings release this morning:
Earnings
Blackstone came out with economic net loss of 35 cents per share, compared to the Zacks Consensus Estimate of loss of 4 cents per share.
Decline in public investment values across funds had an adverse impact on revenues, which declined significantly and contributed to the loss.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Blackstone depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved substantially lower over the last 7 days.
However, Blackstone has a decent earnings surprise history. Before posting a loss in Q3, the company delivered positive surprises in two of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 7.34% in the trailing four quarters.
Revenue Collapse
Blackstone posted revenues (on a GAAP basis) of $11.6 million, which compared unfavorably with the year-ago number of $1.68 billion.
Key Stats to Note:
Stephen A. Schwarzman, Chairman and Chief Executive Officer, said, “Blackstone produced strong Distributable Earnings in the third quarter, reaching a record for the nine-month period. Despite declines in the public markets that affected our Economic Net Income, underlying trends in our businesses and our portfolio companies remain favorable, which is what drives value ultimately.”
Negative performance fees and investment loss led to a substantial decline in revenues.
Total AUM increased 17% year-over-year to $333.9 billion driven by gross inflows and strong fund appreciation.
Total Dry Powder was $84.9 billion, up 101% year-over-year, driven by fundraises for the latest global private equity and real estate funds.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #5 (Strong Sell) for Blackstone. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this Blackstone earnings report!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment