Blackstone misses estimates
Blackstone reported its 2Q15 earnings on July 16. The company missed Wall Street analysts’ economic net income (or ENI) estimates of $0.44, with a posted ENI of $0.43.
Blackstone (BX), the world’s biggest alternative asset manager, reported a 62% decline in its second quarter earnings, mainly due to weak global equity markets. However, the company’s performance fees, generated from selling assets, surpassed analyst estimates. Its assets under management increased by 19% on a year-over-year basis to $333 billion.
In a July 16 company press release, Blackstone chairman and CEO, Stephen A. Schwarzman, noted, “We produced solid results for our investors in the second quarter with strong realization activity despite challenging market conditions. While the weak global equity markets adversely impacted some of our holdings, underlying portfolio company fundamentals are trending significantly better than the overall economy and point towards a fertile field for future value growth and realizations. At the same time we reported $94 billion in gross capital inflows over the past twelve months, a record for the firm and our industry, propelling our Total Assets Under Management to another record of $333 billion, up 19% year-over-year.”
Alternative investment giant
Blackstone provides financial advisory services to clients around the world. The company’s alternative asset management includes investment vehicles focused on private equity, real estate, hedge fund solutions, funds of funds, non-investment-grade credit, and multi-asset class exposures outside other funds’ mandates.
Blackstone also provides financial advisory services, including financial and strategic advisory services, restructuring and reorganizing advisory services, and capital markets and fund placement services. The company faces competition from alternative asset managers as well as traditional asset managers that form part of the Financial Select Sector SPDR Fund (XLF).
Other asset managers
Blackstone’s revenue increased by 12% in the past 12 months. Let’s compare this to revenue growth for Blackstone’s peers:
- The Carlyle Group (CG) posted a decline of 7.2%.
- KKR & Co. (KKR) posted a decline of 18.3%.
- Apollo Global Management (APO) posted a decline of 59.6%.
For further detailed analysis on the company, read The Blackstone Group: Investing with an alternative giant.