Blackstone Beats in Q4; AUM Sets Record

Global investment firm Blackstone (NYSE:BX) reported strong earnings for the fourth quarter and full-year 2024 on Thursday, Jan. 30, that topped analyst consensus estimates. Distributable earnings per share (EPS) of $1.69 exceeded analyst expectations of $1.47. Total segment revenues in Q4 of $4.15 billion easily beat the $3.78 billion estimate and also showed a substantial 64% year-over-year increase.

Overall, the quarter reflected strong financial health for Blackstone, bolstered by substantial (and record-setting) asset management growth and strategic diversification.

Source: Blackstone. Note: Analyst consensus estimates for the quarter provided by FactSet. YOY = Year over year. AUM = Assets under management.

About Blackstone

Blackstone is a leading global investment firm specializing in a diversified range of investment activities, including private equity, real estate, credit, and hedge funds. The company's broad asset base and diversified investment strategies are key drivers of its success in the competitive financial sector. Over recent years, Blackstone has focused significantly on expanding its asset management capabilities and integrating technology into its investment processes.

Central to its investment model is the total assets under management (AUM), which reflect the firm’s capacity to generate fees and deliver returns to its investors. Blackstone has aimed at strategic diversification across asset classes, including real estate, infrastructure, and life sciences, combined with geographical diversification across Europe, Asia, and the Americas. This approach has underpinned its resilience against economic shifts and supported its robust organizational growth.

Q4 2024 Highlights

Blackstone's distributable EPS beat can be attributed to operational efficiency and strategic investments. Net income surged to $1.33 billion, an 1,120% jump from $109 million a year earlier, illustrating Blackstone's immense profitability surge.

Assets under management rose to $1.13 trillion, an 8.5% increase year over year, reflecting the company's ability to assemble large pools of capital across its diversified portfolios. Fee-earning AUM also grew by 9% to $830.7 billion during this period, accompanied by a 12% increase in Perpetual Capital AUM, indicating a solid foundation for future revenue generation.

The expansion into private wealth channels highlighted a critical strategic move, as capital from these channels formed an increasing share of Total AUM. Real estate, private equity, and credit & insurance segments saw prominent growth in AUM, underscoring the strength of Blackstone's diversified investment approach.

Notably, Blackstone declared a quarterly dividend of $1.44 per common share, contributing to a total annual dividend of $3.95 per share, providing a robust return to investors and reflecting the firm's confidence in its growth prospects.

Looking Forward

Looking ahead, Blackstone did not provide specific 2025 guidance in its earnings report. Elsewhere management has said that it anticipates a constructive market environment in 2025, conducive to realizations and capital deployment. Management has indicated a strong focus on leveraging technological advancements, particularly artificial intelligence (AI) and digital infrastructure, to drive investment decisions and enhance efficiency. Additionally, continued expansion into private wealth channels and a commitment to environmental, social, and governance (ESG) principles are expected to be pivotal to Blackstone's strategic trajectory.

Furthermore, the firm plans to capitalize on investment opportunities across the private credit market and infrastructure investments. Blackstone's strategy includes a keen focus on scaling existing platforms and tapping into large, unexploited markets such as asset-based finance and private credit, fueling its long-term growth ambitions.

Where to invest $1,000 right now

When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 908% — a market-crushing outperformance compared to 176% for the S&P 500.*

They just revealed what they believe are the 10 best stocks for investors to buy right now…

Learn more »

*Stock Advisor returns as of January 27, 2025

JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Blackstone. The Motley Fool has a disclosure policy.