A month has gone by since the last earnings report for Blackstone Group (BX). Shares have lost about 6.5% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Blackstone Group due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Blackstone Q2 Earnings In Line, Assets Balance Rise
Blackstone’s second-quarter 2020 distributable earnings of 43 cents per share were in line with the Zacks Consensus Estimate. However, the figure declined 25% from the prior-year quarter.
The results reflected improving assets balance, mainly driven by inflows. However, a decline in segment revenues and higher operating expenses were the undermining factors.
Net loss attributable to Blackstone was $568.3 million, up 86% year over year.
Segment Revenues Down, Expenses Rise
Total segment revenues were $1.11 billion, down 16% year over year. Also, the top line lagged the Zacks Consensus Estimate of $1.13 billion. On a GAAP basis, revenues of $2.52 billion were up 69% from the prior-year quarter.
Total expenses (GAAP basis) increased 36% year over year to $1.17 billion. The rise in total compensation and benefits costs were partly offset by lower general, administrative and other costs, interest expenses, as well as fund expenses.
As of Jun 30, 2020, Blackstone had $4.5 billion in total cash, cash equivalents and corporate treasury investments, as well as $9 billion in cash and net investments. Further, the company has $1.6 billion undrawn credit revolver.
Assets Balance Improves
Fee-earning AUM grew 12% year over year to $435.8 billion. Total AUM amounted to $564.3 billion as of Jun 30, 2020, up 3% year over year. The rise in total AUM was largely driven by $20.3 billion of inflows.
As of Jun 30, 2020, undrawn capital available for investment was $155.9 billion, which was driven by fundraising activity for the latest flagship funds.
Share Repurchase Update
The company repurchased 2 million shares in the quarter.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
Currently, Blackstone Group has an average Growth Score of C, though it is lagging a bit on the Momentum Score front with a D. Following the exact same course, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Blackstone Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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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.