Blackstone Inc. (NYSE:BX) Analysts Just Slashed This Year's Revenue Estimates By 12%

Market forces rained on the parade of Blackstone Inc. (NYSE:BX) shareholders today, when the analysts downgraded their forecasts for this year. Revenue estimates were cut sharply as the analysts signalled a weaker outlook - perhaps a sign that investors should temper their expectations as well.

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Following the latest downgrade, Blackstone's eleven analysts currently expect revenues in 2025 to be US$12b, approximately in line with the last 12 months. Statutory earnings per share are presumed to bounce 48% to US$5.33. Before this latest update, the analysts had been forecasting revenues of US$14b and earnings per share (EPS) of US$5.61 in 2025. It looks like analyst sentiment has fallen somewhat in this update, with a substantial drop in revenue estimates and a small dip in earnings per share numbers as well.

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The consensus price target fell 17% to US$150, with the weaker earnings outlook clearly leading analyst valuation estimates.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We would highlight that sales are expected to reverse, with a forecast 1.8% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 3.9% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 5.2% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Blackstone is expected to lag the wider industry.

The Bottom Line

The most important thing to take away is that analysts cut their earnings per share estimates, expecting a clear decline in business conditions. Regrettably, they also downgraded their revenue estimates, and the latest forecasts imply the business will grow sales slower than the wider market. The consensus price target fell measurably, with analysts seemingly not reassured by recent business developments, leading to a lower estimate of Blackstone's future valuation. Given the stark change in sentiment, we'd understand if investors became more cautious on Blackstone after today.

As you can see, the analysts clearly aren't bullish, and there might be good reason for that. We've identified some potential issues with Blackstone's financials, such as the risk of cutting its dividend. Learn more, and discover the 1 other warning sign we've identified, for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.