Blackstone (BX), the world’s largest alternative investment firm, has delivered “one of the best quarters in our history” as the improved economic outlook fuelled dealmaking.
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The group said its assets under management climbed to a record $1.13 trillion as it released its Q4 results.
Blackstone’s distributable earnings surged 56% to $2.2 billion, or $1.69 per share, in the three months to 31 December compared with $1.4 billion, or $1.11 per share, a year earlier. Analysts had expected Blackstone to post $1.46 a share.
Deals in AsiaPacific and the U.S. Drive Performance
Its fee-related earnings soared 76% to a quarterly record of $1.84 billion while fourth-quarter inflows were $57.5 billion, bringing full-year inflows to $171.5 billion. It deployed $41.6 billion in capital in the quarter including the $16 billion acquisition of AirTrunk, the Asia Pacific data center platform, from Macquarie Asset Management and the Public Sector Pension Investment Board last September. In November, it also agreed to buy sandwich chain Jersey Mike’s Subs in an $8 billion deal.
Blackstone Hails a Landmark Quarter
Stephen A. Schwarzman, Blackstone’s Chairman and Chief Executive Officer, said, “Blackstone reported one of the best quarters in our history. Earnings growth accelerated sharply, while the key drivers of our business – inflows, investment activity and realizations – all reached their highest levels in two-and-a-half years.”
Its improved performance has been driven by lower interest rates and easing economic uncertainty around the globe. Schwarzman expects its “significant momentum” to continue into 2025.
Its shares, which have climbed over 40% in the last 12 months, were down in mid-trading.
Is BX a Good Stock to Buy Now?
On TipRanks, BX has a Moderate Buy consensus based on 4 Buy and 6 Hold ratings. The highest target price is $230. BX stock’s consensus price target is $189.10 implying a 6.12% upside.
