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BlackRock (BLK) Q1 Earnings Beat on Higher Revenues, Inflows
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BlackRock’s (BLK - Free Report) first-quarter 2018 adjusted earnings came in at $6.70 per share, which handily outpaced the Zacks Consensus Estimate of $6.42. Also, the bottom line was 28% higher than the year-ago quarter.
Results benefited from an improvement in revenues, rise in assets under management (AUM) and steady long-term inflows. However, increase in operating expenses acted as a headwind.
Net income (on a GAAP basis) was $2.19 billion, up 27% from the prior-year quarter.
Revenue Growth Offsets Rise in Expenses
Revenues (GAAP basis) were $3.58 billion, increasing 16% year over year. The rise was driven by increase in all revenue components except investment advisory performance fees, which remained stable. The reported figure beat the Zacks Consensus Estimate of $3.28 billion.
Total expenses amounted to $2.21 billion, up 13% year over year. This was due to a rise in all cost components except amortization of intangible assets, which witnessed a decline.
Non-operating expenses (on a GAAP basis) were $16 million, up significantly from $7 million recorded in the year-ago quarter.
BlackRock’s adjusted operating income came in at $1.38 billion, up 20% year over year.
Strong AUM & Inflows
As of Mar 31, 2018, AUM totaled $6.32 trillion, reflecting an increase of 17% year over year. Further, during the reported quarter, the company witnessed long-term net inflows of $54.63 billion.
Share Repurchase Update
During the reported quarter, BlackRock repurchased shares worth $355 million.
Our Viewpoint
BlackRock remains well poised for growth driven by opportunistic acquisitions and its initiatives to gain market share in the ETF business. However, mounting operating expenses and increased dependence on overseas revenues remain primary near-term concerns.
Earnings Release Dates of Other Investment Managers
The Blackstone Group L.P. (BX - Free Report) , Ameriprise Financial, Inc. (AMP - Free Report) and Waddell & Reed Financial, Inc. are scheduled to announce first-quarter 2018 results on Apr 19, Apr 23 and May 1, respectively.
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It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
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BlackRock (BLK) Q1 Earnings Beat on Higher Revenues, Inflows
BlackRock’s (BLK - Free Report) first-quarter 2018 adjusted earnings came in at $6.70 per share, which handily outpaced the Zacks Consensus Estimate of $6.42. Also, the bottom line was 28% higher than the year-ago quarter.
Results benefited from an improvement in revenues, rise in assets under management (AUM) and steady long-term inflows. However, increase in operating expenses acted as a headwind.
Net income (on a GAAP basis) was $2.19 billion, up 27% from the prior-year quarter.
Revenue Growth Offsets Rise in Expenses
Revenues (GAAP basis) were $3.58 billion, increasing 16% year over year. The rise was driven by increase in all revenue components except investment advisory performance fees, which remained stable. The reported figure beat the Zacks Consensus Estimate of $3.28 billion.
Total expenses amounted to $2.21 billion, up 13% year over year. This was due to a rise in all cost components except amortization of intangible assets, which witnessed a decline.
Non-operating expenses (on a GAAP basis) were $16 million, up significantly from $7 million recorded in the year-ago quarter.
BlackRock’s adjusted operating income came in at $1.38 billion, up 20% year over year.
Strong AUM & Inflows
As of Mar 31, 2018, AUM totaled $6.32 trillion, reflecting an increase of 17% year over year. Further, during the reported quarter, the company witnessed long-term net inflows of $54.63 billion.
Share Repurchase Update
During the reported quarter, BlackRock repurchased shares worth $355 million.
Our Viewpoint
BlackRock remains well poised for growth driven by opportunistic acquisitions and its initiatives to gain market share in the ETF business. However, mounting operating expenses and increased dependence on overseas revenues remain primary near-term concerns.
BlackRock, Inc. Price, Consensus and EPS Surprise
BlackRock, Inc. Price, Consensus and EPS Surprise | BlackRock, Inc. Quote
BlackRock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Release Dates of Other Investment Managers
The Blackstone Group L.P. (BX - Free Report) , Ameriprise Financial, Inc. (AMP - Free Report) and Waddell & Reed Financial, Inc. are scheduled to announce first-quarter 2018 results on Apr 19, Apr 23 and May 1, respectively.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>