Alternative investment manager Blackstone (NYSE: BX) will be reporting earnings this Thursday before market open. Here’s what to expect.
Blackstone beat analysts’ revenue expectations by 6.6% last quarter, reporting revenues of $3.34 billion, up 36.7% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ revenue estimates.
Is Blackstone a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Blackstone’s revenue to decline 11% year on year to $3.72 billion, a reversal from the 64.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.53 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Blackstone has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 5% on average.
Looking at Blackstone’s peers in the capital markets segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Jefferies delivered year-on-year revenue growth of 5.7%, beating analysts’ expectations by 3%, and Goldman Sachs reported a revenue decline of 3%, topping estimates by 0.5%. Jefferies traded down 5.6% following the results while Goldman Sachs was up 3.1%.
Read our full analysis of Jefferies’s results here and Goldman Sachs’s results here.
Investors in the capital markets segment have had steady hands going into earnings, with share prices flat over the last month. Blackstone is down 4.4% during the same time and is heading into earnings with an average analyst price target of $178.18 (compared to the current share price of $148.81).
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