Blackstone Q2 Earnings Miss, Stock Dips as Costs Rise

Blackstone's BX second-quarter 2024 distributable earnings of 96 cents per share lagged the Zacks Consensus Estimate of 99 cents. The figure reflects a decline of 3.2% from the prior-year quarter.

Shares of the company lost 1.5% in the pre-market trading. However, a full day's trading session will depict a clearer picture.

Results were primarily hurt by an increase in GAAP expenses. Nevertheless, a rise in segment revenues and improvement in the assets under management balance were tailwinds.

Net income attributable to Blackstone was $444.4 million compared with $601.3 million in the year-ago quarter.

Segment Revenues Improve, GAAP Expenses Rise

Total segment revenues were $2.52 billion, up 7% year over year. The top line outpaced the Zacks Consensus Estimate of $2.51 billion.

On a GAAP basis, revenues were $2.80 billion, down marginally year over year.

Total expenses (GAAP basis) were $1.63 billion, up 10.7% year over year.

As of Jun 30, 2024, Blackstone had $8.7 billion in total cash, cash equivalents and corporate treasury investments, and $17.7 billion in cash and net investments. The company has a $4.3-billion undrawn credit revolver.

AUM Rises

Fee-earning AUM grew 11% year over year to $808.7 billion as of Jun 30, 2024.

The total AUM amounted to $1.08 trillion as of the same date, up 7% year over year. The rise in total AUM was primarily driven by $39.4 billion in inflows in the reported quarter.

As of Jun 30, 2024, the undrawn capital available for investment was $181 billion.

Our Take

Blackstone is 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, high expenses and a challenging operating backdrop are expected to hurt the bottom line in the near term.

Performance & Earnings Release Date of Other Asset Managers

BlackRock, Inc.'s BLK second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflects a rise of 12% from the year-ago quarter.

BLK's results benefited from a rise in revenues. AUM witnessed solid improvement driven by net inflows and market appreciation. However, higher expenses and a fall in non-operating income acted as headwinds for BLK.

Invesco IVZ is scheduled to announce second-quarter 2024 numbers on Jul 23.

Over the past month, the Zacks Consensus Estimate for IVZ's quarterly earnings has been unchanged at 41 cents. Also, the figure implies a jump of 32.3% from the prior-year reported number.

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