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Blackstone (BX) Beats on Q3 Earnings & Revenues, Stock Up 1%

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Shares of The Blackstone Group L.P.BX gained more than 1% in pre-market trading , following the release of the company's third-quarter 2017 earnings. Economic net income (ENI) of 69 cents per share topped the Zacks Consensus Estimate of 57 cents. Also, the figure was 21% above the prior-year quarter level.

Improvement in revenues largely boosted earnings. Also, growth in assets under management (AUM) continued to impress. However, a rise in expenses was an undermining factor.

Blackstone reported ENI of $834.3 million, reflecting an increase 21% year over year.

Revenues & Costs Rise

Total revenues (GAAP basis) increased 22% year over year to $1.75 billion, primarily driven by a rise in performance fees as well as interest and dividend revenues. Also, the top line handily surpassed the Zacks Consensus Estimate of $1.42 billion.

Total expenses (GAAP basis) rose17% year over year to $903.8 million. The increase was primarily due to a drastic surge in fund expenses.

Fee-earning AUM grew 7% year over year to $285.7 billion. Total AUM amounted to $387.4 billion as of Sep 30, 2017, up 7% year over year. The rise in total AUM was largely driven by $62.4 billion of inflows.

As of Sep 30, 2017, Blackstone had $5 billion in total cash, cash equivalents and corporate treasury investments.

Our Viewpoint

Blackstone remains well positioned to capitalize on the changing investment landscape by making long-term investments and augmenting its fund-raising abilities. However, increased dependence on management and advisory fees can affect the company's financials in the near term.

The Blackstone Group L.P. Price, Consensus and EPS Surprise

The Blackstone Group L.P. Price, Consensus and EPS Surprise | The Blackstone Group L.P. Quote

Currently, Blackstone carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Performance of Other Investment Manager and Upcoming Releases

BlackRock, Inc. BLK reported third-quarter 2017 adjusted earnings of $5.92 per share, which outpaced the Zacks Consensus Estimate of $5.59. Results benefited from improvement in revenues, rise in AUM and steady long-term inflows. However, increase in operating expenses acted as a headwind.

Among other investment managers, both Ameriprise Financial, Inc. AMP and Waddell & Reed Financial, Inc. WDR are slated to report results on Oct 24.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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