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The New York-based Blackstone Inc. (BX) is an alternative asset management firm that specializes in real estate, private equity, hedge fund solutions, credit, and equity and multi-asset class strategies. Valued at a market cap of $109.4 billion, the company also provides capital market and financial advisory services and is expected to announce its fiscal Q3 earnings results before the market opens on Thursday, Oct. 17.
Ahead of this event, analysts project the asset management company to report a profit of $1.07 per share, up 13.8% from $0.94 per share in the year-ago quarter. However, the company has beaten or matched Wall Street's bottom-line estimates in two of the last four quarters while missing on two other occasions. In Q2, the company reported an EPS of $0.96, which lagged behind the consensus estimates by 3%.
For fiscal 2024, analysts expect BX to report an EPS of $4.57, up 15.7% from $3.95 in fiscal 2023. Moreover, EPS is expected to grow 29.8% year-over-year to $5.93 in fiscal 2025.
Shares of Blackstone have gained nearly 16% on a YTD basis, lagging behind both the S&P 500 Index's ($SPX) 19.7% rise and the Financial Select Sector SPDR Fund’s (XLF) 19.9% return over the same period.
Despite missing Wall Street’s earnings estimates, shares of BX rose 1.2% following its Q2 earnings release on Jul. 18 primarily due to its revenue of $2.5 billion in the period slightly surpassing the consensus estimates. Growth in the company’s private equity and credit divisions led to a 3% increase in its Q2 distributable earnings, which further bolstered investor confidence. However, on Jul. 24, shares of BX fell 4.2% due to investor pessimism surrounding a 24% dividend cut by the company due to ongoing challenges in the commercial real estate sector.
Analysts' consensus view on Blackstone’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, seven recommend a "Strong Buy," one suggests a "Moderate Buy," 13 suggest "Hold," and one recommends a “Strong Sell.” This configuration is slightly more bullish than three months ago, with six analysts suggesting a "Strong Buy." As of writing, the stock is trading above its mean price target of $138.55.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
