The Blackstone Group (NYSE:BX) shares fell more than 6% after the alternative asset management firm reported a 12% year-over-year drop in profit for the third quarter.
The firm’s distributable earnings fell from $1.37 billion to $1.2 billion.
Its distributable earnings per share decreased by 31% from $1.06 to $0.94. This also fell short of the Street estimate of $0.99.
Fee-related earnings fell 5% from $1.18 billion to $1.12 billion.
Revenue for 3Q was slightly ahead of expectations at $2.54 billion, with analysts projecting $2.53 billion.
Total assets under management at the quarter-end were just above $1 trillion, an increase of 6% year-over-year.
Blackstone joined the S&P 500 index in September, which the company noted made it the first private equity firm to be included.
“Blackstone delivered resilient third-quarter results despite challenging markets,” CEO Stephen Scharzman said in a statement.
“Our investors continue to benefit from our strong sector selection nearly all of our flagship strategies outperformed public benchmarks.”
Shares of Blackstone were down 6.2% at US$95.92 mid-morning on Thursday.
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