Back to top

Image: Bigstock

BlackRock (BLK) Beats on Q2 Earnings, Revenues & AUM Rise

Read MoreHide Full Article

BlackRock, Inc.’s (BLK - Free Report) second-quarter 2020 adjusted earnings of $7.85 per share hugely surpassed the Zacks Consensus Estimate of $6.90. The figure reflects a rise of 22.5% from the year-ago quarter’s number.

Results benefited from an improvement in revenues. Also, expenses declined marginally. Further, long-term net inflows resulted in a rise in assets under management (AUM) balance, which was a major positive for the company.

Net income attributable to BlackRock (on a GAAP basis) was $1.21 billion, up 21% from the prior-year quarter.

Revenues Improve, Expenses Decline Marginally

Revenues for the reported quarter (on a GAAP basis) were $3.65 billion, increasing 3.5% year over year. The upside stemmed from an increase in almost all components of revenues, except for distribution fees, and advisory and other revenues. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $3.58 billion.

Total expenses amounted to $2.24 billion, down marginally from the year-ago quarter. The decline was due to a fall in direct fund expenses, and general and administration costs.

Non-operating income (on a GAAP basis) was $357 million, up from $57 million recorded in the year-ago quarter.

BlackRock’s adjusted operating income was $1.41 billion, up 10% year over year.

Net Inflows Support AUM Growth

As of Jun 30, 2020, AUM totaled $7.32 trillion, reflecting a rise of 6.9% year over year. In the reported quarter, the company witnessed long-term net inflows of $62.21 billion.

Capital Deployment Update

As part of PNC Financial’s (PNC - Free Report) sale of its entire 22% ownership position in BlackRock, the company repurchased shares worth $1.1 billion in the reported quarter.

Our Viewpoint

BlackRock’s continued efforts to strengthen the iShares and ETF operations along with its initiatives to restructure the actively managed equity business are expected to continue to boost the top line and AUM, going forward. Moreover, its inorganic growth efforts bode well for the future.

BlackRock, Inc. Price, Consensus and EPS Surprise
 

BlackRock, Inc. Price, Consensus and EPS Surprise

BlackRock, Inc. price-consensus-eps-surprise-chart | BlackRock, Inc. Quote

BlackRock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Earnings Release Schedule of Other Finance Companies

Community Bank System (CBU - Free Report) is scheduled to release quarterly results on Jul 27, while Atlantic Capital Bancshares will report earnings on Jul 23.

Biggest Tech Breakthrough in a Generation

Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.

A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.

See 8 breakthrough stocks now>>

Published in