Blackstone Inc. Poised for Strong Q4 Earnings Amid Positive Market Trends
With a market capitalization of $125.4 billion, Blackstone Inc. (BX) stands as a leading alternative asset management firm. The company operates primarily in private equity, real estate, hedge fund solutions, and various credit strategies. Based in New York, Blackstone typically targets investments across multiple stages, from early seed funding to mature companies, in addition to offering capital markets services. Fiscal Q4 earnings results are set to be announced on Thursday, Jan. 23.
Strong Profit Expectations
Analysts forecast a profit of $1.48 per share for BX, representing a 33.3% increase from $1.11 per share reported in the same quarter last year. In recent quarters, the company has generally met or exceeded Wall Street’s estimates, achieving notable success with an adjusted EPS of $1.01 in Q3, which surpassed expectations by 11%.
Growth Forecast for Future Earnings
For fiscal 2024, projections indicate an EPS rise to $4.43, showing a 12.2% increase from $3.95 in fiscal 2023. Furthermore, analysts anticipate that earnings will continue to climb, with an expected 33.2% year-over-year growth to $5.90 in fiscal 2025.
Stock Performance Against Market Benchmarks
Blackstone’s shares have experienced a remarkable 35.5% rally over the past year, outperforming both the S&P 500 Index’s ($SPX) 23.7% gain and the Financial Select Sector SPDR Fund’s (XLF) 27.7% return during the same period.
Investors Respond to Strong Q3 Performance
On Oct. 17, BX shares surged 6.3% following better-than-expected Q3 results, showcasing adjusted earnings of $1.01 per share, a 7.4% increase from the previous year, alongside adjusted revenues of $2.4 billion, up 4.7% year-over-year. A 12% growth in fee-earning Asset Under Management (AUM) to $820.5 billion and a record total AUM of $1.1 trillion contributed significantly to their success. The firm also saw $41 billion in inflows and committed $54 billion in capital during the quarter, marking the highest activity in over two years.
Wall Street Analysts Provide Mixed Reviews
Wall Street’s outlook on Blackstone is cautiously optimistic, with an overall “Moderate Buy” rating across 22 analysts. Among these, six analysts recommend a “Strong Buy,” one favors a “Moderate Buy,” 14 suggest “Hold,” and one indicates a “Strong Sell.” This represents a slight downward shift from three months ago, when seven analysts rated the stock as a “Strong Buy.”
Price Target Indicates Slight Upside
The average price target for BX stands at $177.85, suggesting a modest 2.4% upside from current trading levels.
On the date of publication, Neharika Jain 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.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
