BlackRock, Inc., Blackstone Group LP Beat Earnings Estimates

BlackRock and Blackstone released the earnings results from their most recently completed quarters this morning. BlackRock posted adjusted earnings of $4.89 per share, a 10% increase, on revenue of $2.72 billion, a 1% year over year improvement. Analysts had been looking for earnings of $4.50 per share.

Blackstone posted earnings of $1.05 per share on revenue of $2.51 billion for the first quarter. Analysts had been looking for earnings of $1.04 per share. In the same quarter last year, Blackstone reported earnings of 40 cents per share on revenue of $1.51 billion.

Q2 Letter: Baupost won big in Q2 with PG&E, eBay, Liberty Global

VolatilitySeth Klarman's Baupost recorded "strong" gains for the second quarter, although precise numbers were not included in the July 23 letter to investors, which was reviewed by ValueWalk. Klarman said that during the first quarter, they were "substantial purchasers of securities," while during the second, they were "significant net sellers" due to the strong rally. Read More

Key metrics from BlackRock’s earnings report

BlackRock’s reported earnings were $4.84 per share, while its profit rose 9% to $822 million for the first quarter. The firm said its assets under management increased 8% year over year. BlackRock recorded $70.4 billion in long-term net inflows for the quarter, which represented an annualized organic growth rate of 6.5%.

The firm recorded $14.2 billion in retail long-term net inflows and $35.5 billion in long-term net inflows for its iShares segment. BlackRock’s Institutional active long-term net inflows were $18 billion, and its Institutional index long-term net inflows were $2.8 billion. The firm’s cash management assets under management declined quarter over quarter by 1% to $292.5 billion. BlackRock’s advisory assets under management fell 17% quarter over quarter to $18.1 billion.

BlackRock also increased its quarterly dividend to $2.18 per share and repurchased $275 million worth of shares during the quarter.

Key metrics from Blackstone’s earnings report

Blackstone’s economic income for the quarter was $1.6 billion or $1.37 per unit, a new record and a 99% year over year increase. GAAP net income was $629 million, and total assets under management increased 14% to $310.5 billion, making the firm the first alternative asset management to surpass $300 billion in assets under management.

The firm’s Private Equity segment saw record revenue of $1.2 billion and economic income of $829 million. Blackstone’s Real Estate business saw $915 million in revenue and $638 million in economic net income. Hedge Fund Solutions recorded $185 million in revenue and $88 million in economic net income. The Credit segment saw a 17% increase in fee revenues, and the Financial Advisory segment recorded a 20% increase in total revenues.

Blackstone also declared a dividend of 89 cents per share payable on May 4.