Blackstone thrives on equity growth; Q3 results beat estimates

The persistent uptrend in the stock market in recent months pushed up Blackstone Group’s (BX) third-quarter results, which also topped analysts’ forecast. Economic net income, a key metric that reflects the mark-to-market valuation changes, rose 11% to $0.76 per unit.

Reported earnings of the New York-based company, which manages alternative assets, increased to $442.74 million or $0.64 per share in the third quarter from $377.9 million or $0.55 per share in the year-ago quarter.

Total revenues advanced 11% year-on-year to $1.93 billion during the three-month period and surpassed expectations, driven entirely by private equity revenue that more than doubled to $835.3 million. All the other operating segments declined. At $456.7 billion, assets under management were higher by 18% compared to the third quarter of 2017.

The top-line moved up 11% year-on-year and surpassed expectations, driven entirely by higher private equity revenue

“We have powerful momentum throughout our existing business lines and multiple promising new initiatives underway, including the launch of Blackstone Life Sciences,” said Blackstone CEO Stephen Schwarzman.

The company returned about $1 billion to unit-holders through share repurchase and dividends during the third quarter when it also declared a quarterly dividend of $0.64 per unit, which includes a special distribution of $0.10 per unit. The dividend will be paid on November 5, 2018, to unit-holders of record on October 29, 2018.

Blackstone this week acquired UK-based events venue operator National Exhibition Centre Group from private equity arm of Lloyds Banking Group as part of its ongoing expansion program. Earlier this month, the company signed an agreement to buy life sciences investment firm Clarus.

Blackstone shares rose about 10% over the past twelve months. The stock closed the previous trading session higher and gained further in premarket trading after the earnings report.

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