Blackstone's Third Quarter: Revenue Growth Amidst Stock Drop

Blackstone Reports Strong Q3 Earnings Amid Market Fluctuations
Blackstone (NYSE: BX) shares experienced a notable dip recently despite the company delivering robust third-quarter results. The alternative asset manager reported segment revenues of $3.30 billion, reflecting a 36% increase year-over-year (Y/Y). This figure surpassed analysts' expectations, which had forecasted revenues at $3.12 billion, signaling a strong performance across various divisions.
Highlighting Key Financial Metrics
In terms of distributable earnings, Blackstone reported a remarkable 48% increase Y/Y, amounting to $1.89 billion. These earnings translated into distributable earnings per share of $1.52, showcasing a 50% rise compared to the previous year and exceeding market analysts' consolidated estimate of $1.23 per share.
Impressive Fee-Related Earnings
The company's fee-related earnings also demonstrated growth, rising 26% Y/Y to $1.48 billion. Breaking this down by sector reveals that real estate earnings increased by 10%, while the credit and insurance segments saw a 13% rise. Notably, private equity surged by 68%, and the Multi-Asset Investing segments grew by 26%, emphasizing the diversity and strength of Blackstone's investments.
Additional Metrics of Interest
Despite impressive earnings, the report revealed a slight decline in net accrued performance revenue, which fell to $6.51 billion from $6.99 billion in the same quarter last year. Nonetheless, assets under management expanded by 12% Y/Y, reaching a total of $1.24 trillion, aided by inflows amounting to $54.2 billion during the quarter.
Shareholder Returns and Share Buybacks
Blackstone also declared a quarterly dividend of $1.29 per share, scheduled for distribution on November 10. This distribution is earmarked for shareholders on record as of November 3. In addition, the company repurchased 0.2 million shares during the quarter, with $1.7 billion remaining in available buyback authorization as of September 30.
CEO's Insight on Q3 Performance
CEO Stephen A. Schwarzman characterized the third quarter as “exceptional,” attributing this success to strong momentum across key channels which include institutions, insurance, and individuals. His remarks highlight the company's strategic focus on diverse asset management that appeals to a broad base.
Stock Performance Overview
Despite the positive earnings report, BX shares have dipped by 1.06%, reflecting an adjustment in market sentiment. The latest check indicates the shares trading around $160.00.
Frequently Asked Questions
What were Blackstone's Q3 revenues?
Blackstone reported segment revenues of $3.30 billion, a 36% increase from the previous year.
How much did Blackstone's distributable earnings increase?
Distributable earnings rose by 48% Y/Y, reaching $1.89 billion.
What is the current status of Blackstone's dividend?
The company declared a quarterly dividend of $1.29 per share, payable on November 10.
How much did Blackstone repurchase in shares?
In the quarter, Blackstone repurchased 0.2 million shares, with $1.7 billion remaining for future buybacks.
What did the CEO say about the company's performance?
Stephen A. Schwarzman described Q3 as “exceptional,” emphasizing the momentum from institutions, insurance, and individual investors.
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