Why Is Alternative Investment Giant Blackstone Stock Falling Premarket Thursday?

Zinger Key Points
  • Blackstone surpasses revenue expectations in Q1 FY24 with $2.55 billion.
  • Distributable earnings rise 1% YoY to $1.27 billion; Fee-related earnings grow across segments.

Blackstone Inc BX shares are trading lower after it reported first-quarter FY24 results.

Blackstone reported adjusted revenues of $2.55 billion, beating the consensus of $2.49 billion. 

Distributable earnings (DE) rose 1% Y/Y to $1.27 billion. Fee-related earnings grew by 12% Y/Y to $1.16 billion.

Fee-related earnings rose 12% Y/Y in the Real Estate, 25% in the Credit & Insurance business, and 2% Y/Y in the Private Equity segments.

Net accrued performance revenue declined to $6.1 billion in the quarter from $6.4 billion in the prior year quarter. 

Distributable earnings per share of $0.98 topped the consensus of $0.97.

Asset under management rose 7% Y/Y to $1.06 trillion, with inflows of $34.0 billion in the quarter.

Dividend: Blackstone declared a quarterly dividend per share of $0.83, payable on May 6, 2024, to shareholders of record as of April 29, 2024. 

The company repurchased 0.7 million shares in the first quarter, with shares available for authorization worth $668 million as of March 31, 2024.

Stephen A. Schwarzman, Chairman and CEO, said, “Blackstone reported strong first-quarter results, highlighted by accelerating momentum in our private credit and private wealth businesses. We are seeing a strengthening transaction environment and attractive opportunities to deploy capital. We are well positioned to navigate today’s dynamic market landscape, with a portfolio concentrated in compelling sectors and nearly $200 billion of dry powder available to invest.” 

This month, Blackstone Real Estate Partners X entered into a definitive agreement to acquire Apartment Income REIT Corp. AIRC in an all-cash transaction valued at about $10 billion, including the assumption of debt.

Investors can gain exposure to the stock via EA Series Trust WHITEWOLF Publicly Listed Private Equity ETF LBO.

Also ReadBlackstone Nears Privatization Of L’Occitane – Ending Skin-Care Giant’s 14-Year Hong Kong Stock Exchange Run: Report

Price Action: BX shares are down 1.78% to $121.00 premarket on the last check Thursday.

Photo via Shutterstock

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