Why Blackstone Saw Strong Results in 3Q17
Earnings and revenue numbers
The Blackstone Group (BX) reported EPS (earnings per share) of $0.69 in 3Q17, beating analysts’ estimate of $0.54. The company saw strong EPS thanks to strong segmental performance, with strong fund performance and management fee growth.
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The company generated a trailing-12-month return of 12.1% on its assets. Peers (XLF) Apollo Global Management (APO), KKR (KKR), and The Carlyle Group (CG) returned of 20.7%, 7.7%, and 5.1%, respectively.
Blackstone reported total revenue of $1.7 billion in 3Q17, implying a significant rise of 21% YoY (year-over-year), which was due to performance fee growth and well as higher interest income and dividend revenue.
Fee-related earnings and total AUM
Blackstone’s FRE (fee-related earnings) rose 25% YoY to $307 million in 3Q17, mainly due to strong net management fee numbers. In 3Q17, the company’s total assets under management rose 7% YoY to $387.4 billion, mainly due to the strong performance of the company’s funds and organic expansion, as well as fundraising.