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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 2022 adjusted earnings of $9.52 per share outpaced the Zacks Consensus Estimate of $8.92. The figure reflects a rise of 18.4% from the year-ago quarter.

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.

Net income attributable to BlackRock (on a GAAP basis) was $1.44 billion, up 19.8% from the prior-year quarter.

Revenues Improve, Expenses Rise

Revenues (on a GAAP basis) were $4.70 billion, increasing 6.8% year over year. The upside stemmed from an increase in almost all components of revenues, except for investment advisory performance fees. The figure lagged the Zacks Consensus Estimate of $4.90 billion.

Total expenses amounted to $2.94 billion, up 2.9% from the year-ago period. The rise was due to an increase in almost all cost components, except for general and administration expenses.

Non-operating expenses (on a GAAP basis) were $138 million against non-operating income of $46 million in the year-ago quarter.

BlackRock’s adjusted operating income was $1.82 billion, up 13.9% from the prior-year period.

Net Inflows Support AUM Growth

As of Mar 31, 2022, AUM totaled $9.57 trillion, reflecting a year-over-year jump of 6.2%. In the reported quarter, the company witnessed long-term net inflows of $114 billion.

Share Repurchase Update

BlackRock repurchased shares worth $500 million in the reported quarter.

Our Viewpoint

Rising expenses (as witnessed in the first quarter) will likely hurt the company’s bottom line to some extent. BLK’s high dependence on overseas revenues is another concern, making us apprehensive about its prospects.

However, 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.

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 #4 (Sell).

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

Earnings Release Schedule of Other Asset Managers

We now look forward to the earnings releases of Federated Hermes, Inc. (FHI - Free Report) and Invesco Ltd. (IVZ - Free Report) .

Invesco is scheduled to report first-quarter results on Apr 26, whereas Federated Hermes will post the quarterly numbers on Apr 28.

Both IVZ and FHI currently carry a Zacks Rank #4.


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