BlackRock’s (BLK - Free Report) second-quarter 2018 adjusted earnings of $6.66 per share outpaced the Zacks Consensus Estimate of $6.60. Also, the bottom line came in 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, an increase in operating expenses acted as a headwind.
Net income (on a GAAP basis) was $1.07 billion, up 26% from the prior-year quarter.
Revenue Growth Offsets Rise in Expenses
Revenues (GAAP basis) were $3.61 billion, increasing 11% year over year. The rise was driven by an increase in all revenue components. The reported figure surpassed the Zacks Consensus Estimate of $3.45 billion.
Total expenses amounted to $2.17 billion, up 8% year over year. This was due to rise in all cost components, except amortization of intangible assets, which witnessed a decline.
Non-operating expenses (on a GAAP basis) were $24 million, against non-operating income of $1 million recorded in the year-ago quarter.
BlackRock’s adjusted operating income was $1.44 billion, up 16% year over year.
Strong AUM & Inflows
As of Jun 30, 2018, AUM totaled $6.30 trillion, reflecting an increase of 11% year over year. Further, during the reported quarter, the company witnessed long-term net inflows of $14.50 billion.
Share Repurchase Update
During the quarter under review, BlackRock repurchased shares worth $300 million.
Our Viewpoint
BlackRock remains well poised for growth, driven by 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 currently 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 second-quarter 2018 results on Jul 19, Jul 24 and Jul 31, respectively.
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BlackRock’s (BLK - Free Report) second-quarter 2018 adjusted earnings of $6.66 per share outpaced the Zacks Consensus Estimate of $6.60. Also, the bottom line came in 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, an increase in operating expenses acted as a headwind.
Net income (on a GAAP basis) was $1.07 billion, up 26% from the prior-year quarter.
Revenue Growth Offsets Rise in Expenses
Revenues (GAAP basis) were $3.61 billion, increasing 11% year over year. The rise was driven by an increase in all revenue components. The reported figure surpassed the Zacks Consensus Estimate of $3.45 billion.
Total expenses amounted to $2.17 billion, up 8% year over year. This was due to rise in all cost components, except amortization of intangible assets, which witnessed a decline.
Non-operating expenses (on a GAAP basis) were $24 million, against non-operating income of $1 million recorded in the year-ago quarter.
BlackRock’s adjusted operating income was $1.44 billion, up 16% year over year.
Strong AUM & Inflows
As of Jun 30, 2018, AUM totaled $6.30 trillion, reflecting an increase of 11% year over year. Further, during the reported quarter, the company witnessed long-term net inflows of $14.50 billion.
Share Repurchase Update
During the quarter under review, BlackRock repurchased shares worth $300 million.
Our Viewpoint
BlackRock remains well poised for growth, driven by 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 currently 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 second-quarter 2018 results on Jul 19, Jul 24 and Jul 31, respectively.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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