Global investment management company Blackstone, Inc. (BX) delivered stronger-than-expected Q3 results driven by robust growth in key financial and capital metrics. Shares jumped 3% on the news, closing at $132.52 on October 21.
The company reported distributable earnings of $1.28 per share, up 103.2% year-over-year, and significantly outpaced analyst estimates of $0.90 per share.
Moreover, total revenue more than doubled compared to the prior-year quarter to $6.22 billion, with management and advisory fees of $1.32 billion and total investment income of $4.76 billion.
Notably, at quarter-end, BX’s total assets under management (AUM) grew 25% year-over-year to $730.66 billion, with fee-earning AUM of $528.41 billion.
What’s more, Blackstone declared a quarterly common dividend of $1.09 per share, payable on November 8 to shareholders of record on November 1. (See Insiders’ Hot Stocks on TipRanks)
Impressed with BX’s best quarter in its 36-year history, Stephen A. Schwarzman, Chairman, and CEO of Blackstone said, “We continue to deliver outstanding investment performance for our limited partners, with the third quarter capping our best twelve-month period for fund appreciation. Looking forward, we have more avenues for growth than ever before, and I believe we are in the early stages of a long-term acceleration of our business.”
In response to BX’s quarterly performance, Jefferies analyst Gerald O’Hara maintained a Buy rating on the stock with a price target of $127, implying 4.2% downside potential to current levels.
O’Hara noted that performance fees beat revenue expectations and business momentum continues to steadily take pace. Having said that, the analyst mentions risks associated with deteriorating investment performances across multiple strategies, limited capital raising ability, and inability to put existing capital to work, which could affect BX’s performance going forward.
Overall, the stock commands a Strong Buy consensus rating based on 6 Buys and 1 Hold. The average Blackstone price target of $130.17 implies 1.8% downside potential to current levels. Shares have gained 142% over the past year.
Also, Blackstone scores a 9 of 10 from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.