Why Blackstone Group (BX) Stock Is Higher Today

NEW YORK (TheStreet) -- Shares of The Blackstone Group (BX) are trading higher 2.29% to $31.65 on Thursday following news the company's net income increased 30% to $814 million.

On Wednesday, the private capital manager and financial advisor announced its economic net income grew to $814 million in Q1'14 from $628 million in Q1'13.

Blackstone also reported a 20% increase in revenue to $1.5 billion from $1.3 billion due to a 29% increase in growth performance fees.

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TheStreet Ratings team rates BLACKSTONE GROUP LP as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLACKSTONE GROUP LP (BX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, notable return on equity, expanding profit margins, good cash flow from operations and solid stock price performance. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • BX's very impressive revenue growth greatly exceeded the industry average of 7.7%. Since the same quarter one year prior, revenues leaped by 122.6%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Capital Markets industry and the overall market, BLACKSTONE GROUP LP's return on equity exceeds that of both the industry average and the S&P 500.
  • The gross profit margin for BLACKSTONE GROUP LP is rather high; currently it is at 54.13%. It has increased significantly from the same period last year. Along with this, the net profit margin of 22.92% is above that of the industry average.
  • Net operating cash flow has significantly increased by 259.44% to $815.24 million when compared to the same quarter last year. In addition, BLACKSTONE GROUP LP has also vastly surpassed the industry average cash flow growth rate of 124.57%.
  • Powered by its strong earnings growth of 447.36% and other important driving factors, this stock has surged by 43.66% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, BX should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • You can view the full analysis from the report here: BX Ratings Report

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