Shares of Blackstone (NYSE:BX) jumped nearly 6% on Thursday following the release of better-than-expected Q4 earnings. The asset manager witnessed inflows and higher assets under management during the quarter.
Blackstone reported distributable earnings of $1.07 per share, down 37% year-over-year, but surpassed the Street’s estimate of $0.95.
Moreover, total revenue declined 70.4% year-over-year to $1.7 billion. The decrease can be attributed in large part to fewer realizations in the quarter due to the uncertain economic environment. This was partially offset by a 13% jump in management and advisory fees.
As of December 31, 2022, total assets under management (AUM) stood at $974.7 billion, up 11% year-over-year, with fee-earning AUM of $718.4 billion also increasing by 11%. Furthermore, the company recorded inflows of $43.1 billion in the quarter and $226 billion in 2022.
In the fourth quarter, Blackstone witnessed a strong performance in corporate private equity and liquid credit strategies. Private Credit and hedge fund solutions also generated decent returns. Nevertheless, significant redemption requests from BREIT during the quarter marred the performance of the real estate funds.
Capital Deployment
Blackstone declared a quarterly common dividend of $0.91 per share, up 1.1% from the previous payout. The dividend will be paid on February 13 to shareholders of record on February 6.
Interestingly, BX stock has an impressive dividend yield of 5.56%, which compares favorably with the financial sector’s average of 2.11%.
Is Blackstone a Good Stock to Buy Now?
The Street is cautiously optimistic about the stock, with a Moderate Buy consensus rating based on 10 Buys, four Holds, and one Sell. The average Blackstone price target of $98.21 implies 4.69% upside potential. Shares have gained 1.4% over the past three months.
