Blackstone's Billion-Dollar Bet Pays Off

Blackstone Inc. (BX) - Get Blackstone Inc. Report - was the top performer in the financial sector on Wednesday, with shares surging 12.4% to close at $83.59.

The private equity giant's stock rallied after the company reported stronger-than-expected quarterly results. For the period ended March 31, Blackstone posted net income of $1.1 billion, or $1.34 per share, compared to $744 million, or $0.92 per share, in the same period last year.

The company's adjusted earnings per share (EPS) came in at $1.44, easily beating the Street's estimate of $1.23 per share. Revenue rose 15% year over year to $2.3 billion, also exceeding expectations.

Blackstone's performance was driven by strong gains in its private equity and real estate segments. The company's private equity business produced net income of $842 million, while its real estate segment generated $555 million in net income.

"We're pleased with our strong start to the year, driven by the resilience of our portfolio and the effectiveness of our investment strategies," said Blackstone President and CEO Stephen A. Schwarzman. "We're focused on delivering long-term value to our investors and are well-positioned to continue to grow our business in the years ahead."

The market responded positively to Blackstone's results, with the company's stock surging to a new 52-week high. The rally was broad-based, with many of the company's peers in the financial sector also rising in sympathy. The S&P 500 Index, meanwhile, gained 1.2% on the day.