Blackstone's Q3 Earnings Beat on AUM Growth, Shares Hit All-Time High

Blackstone's Q3 2024 Performance - Blackstone's shares reached an all-time high of $172 25 during intraday trading on Thursday, driven by strong Q3 2024 results [1] - Distributable earnings of $1 01 per share exceeded the Zacks Consensus Estimate of 91 cents and reflected a 7% YoY increase [1] - Total segment revenues were $2 43 billion, up 5% YoY, surpassing the Zacks Consensus Estimate of $2 42 billion [1] - GAAP revenues surged 44% to $3 66 billion, driven by growth in total AUM and fee-earning AUM [1] Assets Under Management (AUM) Growth - Fee-earning AUM increased 12% YoY to $820 5 billion as of Sept 30, 2024 [2] - Total AUM grew 10% to $1 11 trillion [2] - Net inflows for the quarter were $40 5 billion, with the last 12-month inflows totaling $166 7 billion [2] - The Credit and Insurance segment contributed $21 4 billion in inflows during the quarter [2] Capital Deployment and Market Conditions - Blackstone invested or committed $54 billion in Q3 2024, the highest in over two years [2] - Over the last 12 months, the company deployed $123 billion since the cost of capital peaked [2] - The rise in AUM was supported by robust equity market performance and the Federal Reserve's monetary policy easing [2] Financial Metrics and Expenses - Net management and advisory fees, the largest component of GAAP revenues, rose 8% to $1 79 billion in Q3 2024 [4] - Total expenses on a GAAP basis increased 38% YoY to $1 9 billion, primarily due to a 52% surge in compensation and benefits costs [4] - As of Sept 30, 2024, Blackstone had $8 9 billion in total cash, cash equivalents, and corporate treasury investments, and $18 7 billion in cash and net investments [4] - The company had $171 6 billion in undrawn capital available for investment (total dry powder) [3][4] Peer Earnings Expectations - Invesco (IVZ) is expected to report Q3 2024 earnings on Oct 22, with the Zacks Consensus Estimate revised upward by 2 3% to 44 cents, reflecting a 25 7% YoY increase [5] - T Rowe Price Group (TROW) is scheduled to announce Q3 2024 results on Nov 1, with the Zacks Consensus Estimate revised upward by almost 1% to $2 33, indicating 7 4% YoY growth [5]