Why Alternative Asset Manager Blackstone's Shares Are Sliding Today

Blackstone Inc BX shares are trading lower by 4% after it reported Q3 FY23 results.

BX reported segment revenues of $2.32 billion, down 10% Y/Y and missing the consensus of $2.51 billion.

Distributable earnings (DE) fell 12% Y/Y to $1.21 billion. Fee-related earnings fell by 5% Y/Y to $1.12 billion.

Fee-related earnings declined 10% Y/Y in the real estate and 6% Y/Y in private equity segments but rose 16% in Credit & Insurance business.

Opportunistic funds fell 0.2%, and core real estate funds appreciated by 0.3% in Q3.

Distributable Earnings per share of $0.94 missed the consensus of $1.01.

Net accrued performance revenue declined to $6.435 billion in Q3 2023 from $7.059 billion in Q3 2022.

Asset under management rose 6% Y/Y to $1.01 trillion, with inflows of $25.3 billion in Q3.

Dividend: Blackstone declared a quarterly dividend per share of $0.80, payable on November 6, 2023, to shareholders of record as of October 30, 2023. 

Repurchase: The company repurchased 1.3 million shares in Q3, with shares available for authorization worth $798 million as of September 30, 2023.

Blackstone joined the S&P 500 index effective September 18, 2023, and became the first major alternative asset manager to be included on the index.

Stephen A. Schwarzman, Chairman and CEO, said, "Blackstone delivered resilient third-quarter results despite challenging markets. Our investors continue to benefit from our strong sector selection — nearly all of our flagship strategies outperformed public benchmarks. Our exceptional long-term track record, unique breadth and the power of our brand allowed us to raise over $25 billion of capital, and we are well positioned with record dry powder of $200 billion to deploy in a dislocated environment."

Also Read: Blackstone's India Move - In Talks For Disney's Stake

Price Action: BX shares are down 3.71% to $98.50 premarket on the last check Thursday.