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BlackRock, Inc.’s (BLK - Free Report) first-quarter 2024 adjusted earnings of $9.81 per share handily surpassed the Zacks Consensus Estimate of $9.42. The figure reflects a jump of 24% from the year-ago quarter.
Shares of BLK are trending more than 2.5% higher in the pre-market trading session today.
The results benefited from a rise in revenues and higher non-operating income. Further, assets under management (AUM) balance witnessed an improvement driven by net inflows. However, higher expenses acted as a dampener.
Net income attributable to BlackRock (on a GAAP basis) was $1.57 billion, rising 36% from the prior-year quarter. We had projected the metric to be $1.32 billion.
Revenues Improve, Expenses Rise
Revenues (on a GAAP basis) in the quarter were $4.72 billion, outpacing the Zacks Consensus Estimate of $4.69 billion. Moreover, the figure increased 11% year over year. The rise was mainly driven by an increase in total investment advisory, administration fees and securities lending revenues, investment advisory performance fees and technology services revenues.
Total expenses amounted to $3.04 billion, rising 8%. The uptick was mainly due to a rise in all cost components. Our estimate for expenses was $3 billion.
Non-operating income (on a GAAP basis) was $220 million, surging 90%. Our estimate for non-operating income was $213.5 million.
BlackRock’s adjusted operating income was $1.78 billion, climbing 17% from the prior-year quarter.
AUM Balance Up
As of Mar 31, 2024, AUM totaled $10.5 trillion, reflecting a year-over-year increase of 15%. Our estimate for AUM was $10 trillion. In the reported quarter, the company witnessed long-term net inflows of $76 billion.
Average AUM of $10.2 trillion as of Mar 31, 2024, rose 14% year over year. We had projected the average AUM to be $9.86 trillion.
Share Repurchase Update
BlackRock repurchased shares worth $375 million in the reported quarter.
Our View
BLK’s continued efforts to strengthen the iShares and ETF operations, along with its initiatives to restructure the actively managed equity business, are expected to remain tailwinds. The planned acquisitions of Global Infrastructure Partners and SpiderRock are expected to bolster the company’s position as the global asset manager.
Earnings Dates & Expectations of Other Asset Managers
Invesco (IVZ - Free Report) is scheduled to announce first-quarter 2024 numbers on Apr 23.
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been raised 2.6% to 40 cents. Also, the figure implies a rise of 5.3% from the prior-year reported number.
T. Rowe Price Group, Inc. (TROW - Free Report) is slated to report first-quarter 2024 results on Apr 26.
Over the past 30 days, the Zacks Consensus Estimate for TROW’s quarterly earnings has moved 3.7% upward to $1.94. The figure indicates 14.8% growth from the prior-year quarter.
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BlackRock (BLK) Beats Q1 Earnings Estimates, Stock Gains
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2024 adjusted earnings of $9.81 per share handily surpassed the Zacks Consensus Estimate of $9.42. The figure reflects a jump of 24% from the year-ago quarter.
Shares of BLK are trending more than 2.5% higher in the pre-market trading session today.
The results benefited from a rise in revenues and higher non-operating income. Further, assets under management (AUM) balance witnessed an improvement driven by net inflows. However, higher expenses acted as a dampener.
Net income attributable to BlackRock (on a GAAP basis) was $1.57 billion, rising 36% from the prior-year quarter. We had projected the metric to be $1.32 billion.
Revenues Improve, Expenses Rise
Revenues (on a GAAP basis) in the quarter were $4.72 billion, outpacing the Zacks Consensus Estimate of $4.69 billion. Moreover, the figure increased 11% year over year. The rise was mainly driven by an increase in total investment advisory, administration fees and securities lending revenues, investment advisory performance fees and technology services revenues.
Total expenses amounted to $3.04 billion, rising 8%. The uptick was mainly due to a rise in all cost components. Our estimate for expenses was $3 billion.
Non-operating income (on a GAAP basis) was $220 million, surging 90%. Our estimate for non-operating income was $213.5 million.
BlackRock’s adjusted operating income was $1.78 billion, climbing 17% from the prior-year quarter.
AUM Balance Up
As of Mar 31, 2024, AUM totaled $10.5 trillion, reflecting a year-over-year increase of 15%. Our estimate for AUM was $10 trillion. In the reported quarter, the company witnessed long-term net inflows of $76 billion.
Average AUM of $10.2 trillion as of Mar 31, 2024, rose 14% year over year. We had projected the average AUM to be $9.86 trillion.
Share Repurchase Update
BlackRock repurchased shares worth $375 million in the reported quarter.
Our View
BLK’s continued efforts to strengthen the iShares and ETF operations, along with its initiatives to restructure the actively managed equity business, are expected to remain tailwinds. The planned acquisitions of Global Infrastructure Partners and SpiderRock are expected to bolster the company’s position as the global asset manager.
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 Dates & Expectations of Other Asset Managers
Invesco (IVZ - Free Report) is scheduled to announce first-quarter 2024 numbers on Apr 23.
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has been raised 2.6% to 40 cents. Also, the figure implies a rise of 5.3% from the prior-year reported number.
T. Rowe Price Group, Inc. (TROW - Free Report) is slated to report first-quarter 2024 results on Apr 26.
Over the past 30 days, the Zacks Consensus Estimate for TROW’s quarterly earnings has moved 3.7% upward to $1.94. The figure indicates 14.8% growth from the prior-year quarter.