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BlackRock (BLK) Q1 Earnings Beat, Revenues & AUM Rise Y/Y

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BlackRock, Inc.’s (BLK - Free Report) first-quarter 2021 adjusted earnings of $7.77 per share outpaced the Zacks Consensus Estimate of $7.64. The figure reflects a rise of 17.7% from the year-ago quarter’s number.

Results benefited from an improvement in revenues and lower expenses. Further, long-term net inflows supported growth in assets under management (AUM) balance, which was a major positive for the company.

Net income attributable to BlackRock (on a GAAP basis) was $1.2 billion, up 48.8% from the prior-year quarter.

Revenues Improve & Expenses Fall

Revenues (on a GAAP basis) came in at $4.4 billion, increasing 18.6% year over year. This upside stemmed from an increase in almost all components of revenues, except for advisory and other revenues, and securities lending revenue. Moreover, the figure surpassed the Zacks Consensus Estimate of $4.35 billion.

Total expenses amounted to $2.85 billion, down 5.7% from the year-ago quarter. This fall mainly resulted from a 48.8% decline in general and administration costs.

Non-operating income (on a GAAP basis) was $46 million as against the non-operating expenses of $71 million seen in the year-ago quarter.
BlackRock’s adjusted operating income was $1.55 billion, substantially up from $ in the prior year quarter.

Net Inflows Support AUM Growth

As of Mar 31, 2021, AUM totaled $9.01 trillion, reflecting a jump of 39.3% year over year. In the reported quarter, the company witnessed long-term net inflows of $133 billion.

Share Repurchase Update

BlackRock repurchased shares worth $300 million during 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 boosting the top line and AUM in the days to come. In addition, its inorganic growth efforts bode well for the future.

BlackRock, Inc. Price and EPS Surprise

BlackRock, Inc. Price and EPS Surprise

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

 

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 Schedule of Other Asset Managers

SEI Investments Company (SEIC - Free Report) and Cohen & Steers, Inc. (CNS - Free Report) are slated to release figures on Apr 21, whereas The Blackstone Group Inc. (BX - Free Report) is scheduled to report quarterly numbers on Apr 22.

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