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BlackRock (BLK) Q3 Earnings Beat, Revenues & AUM Rise Y/Y

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BlackRock, Inc.’s (BLK - Free Report) third-quarter 2021 adjusted earnings of $10.95 per share outpaced the Zacks Consensus Estimate of $9.63. The figure reflects a rise of 18.8% from the year-ago quarter’s number.

Results benefited from an improvement in revenues, partly offset by higher expenses. Moreover, 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 $1.68 billion, up 23.2% from the prior-year quarter.

Revenues Improve, Expenses Rise

Revenues (on a GAAP basis) were $5.05 billion, increasing 15.6% year over year. The upside stemmed from an increase in almost all components of revenues, except for investment advisory performance fees, and advisory and other revenues. The figure surpassed the Zacks Consensus Estimate of $5 billion.

Total expenses amounted to $3.12 billion, up 19.3% from the year-ago period. The rise was due to an increase in all cost components.

Non-operating income (on a GAAP basis) was $336 million, up 50% from the year-ago quarter.

BlackRock’s adjusted operating income was $1.95 billion, up 10.8% from the prior-year period.

Net Inflows Support AUM Growth

As of Sep 30, 2021, AUM totaled $9.46 trillion, reflecting a jump of 21.2% year over year. In the reported quarter, the company witnessed long-term net inflows of $98 billion.

Share Repurchase Update

BlackRock repurchased shares worth $300 million in the reported quarter.

Our Viewpoint

The company’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. However, rising expenses (as witnessed in the third quarter as well) will likely hurt the bottom line to some extent.

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 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

The Blackstone Group Inc. (BX - Free Report) is slated to announce third-quarter results on Oct 21. Ameriprise Financial, Inc. (AMP - Free Report) and Invesco Ltd. (IVZ - Free Report) will release quarterly numbers on Oct 26.

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