Have you been eager to see how The Blackstone Group L.P. BX performed in Q1 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:
An Earnings Miss
Blackstone came out with economic net income of 31 cents per share, which lagged the Zacks Consensus Estimate of 40 cents. Moreover, the figure compared unfavorably with the year-ago figure of $1.37 per share.
Pressurized revenues weighed on the results, while lower expense base was the positive.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Blackstone depicted optimism prior to the earnings release. The Zacks Consensus Estimate has moved 21% higher over the last 7 days.
However, Blackstone does not have a decent earnings surprise history. Before posting an earnings miss in Q1, the company delivered negative surprises in three of the prior four quarters, with an average miss of 18.52%.
Revenue Came In Lower Than Expected
Blackstone posted revenues (on a GAAP basis) of $932.4 million, which missed the Zacks Consensus Estimate of $978 million. Further, the figure compared unfavorably with the year-ago number of $2.51 billion.
Key Stats to Note:
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Total assets under management (“AUM”) reached a record $343.7 billion through a combination of strong fundraising and organic expansion.
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Gross inflows were $17.1 billion in the first quarter, bringing LTM inflows to $80.2 billion.
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Total Dry Powder was $88.6 billion, up 37% year-over-year, driven by recent 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 #3 (Hold) 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!
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