Shares of Blackstone Inc. took a 2.3% hit in morning trading on Thursday, breaking their five-day winning streak and retreating from an eight-month high. This dip occurred just after the asset manager proudly announced that it was the first to surpass an astonishing $1 trillion in assets under management. However, despite this milestone, Blackstone reported segment revenue that fell more than expected.
Lower Revenue but Strong Earnings
In the year-ago period, net distributable income for Blackstone fell from $1.99 billion to $1.21 billion, resulting in earnings per share of 93 cents, down from $1.49 per share. Surprisingly, these figures still managed to surpass the FactSet consensus of 92 cents per share. On the other hand, segment revenue dropped by 43.4% to $2.35 billion, which missed the FactSet consensus of $2.43 billion.
Steady Growth in Assets Under Management
While revenue experienced a decline, Blackstone saw positive growth in its total assets under management, which increased by 6% to reach $1.0 trillion. Additionally, fee-earning AUM also witnessed a healthy increase, rising by 7% to reach $731.1 billion.
Dividend and Stock Movement
Blackstone declared a quarterly dividend of 79 cents per share, scheduled to be paid out on August 7th. It is worth noting that this dividend is slightly lower than the 82 cents per share that was paid in late-April. Prior to the dip, Blackstone’s stock had been performing remarkably well and had climbed 10.2% over the past five sessions, closing on Wednesday at the highest price since November 11th. Year-to-date, the stock has seen an astounding 42.5% surge, outperforming the S&P 500’s gain of 18.9%.
Overall, while Blackstone encountered a setback with its segment revenue, the company’s strong earnings per share and significant asset growth highlight its continued success in the market.
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