We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
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 also reflected a jump of 24% from the year-ago quarter.
Further, BLK’s total revenues (on a GAAP basis) of $4.72 billion beat the Zacks Consensus Estimate of $4.69 billion. The figure also increased 11% year over year.
The primary driver for the increase in top line was the record assets under management (AUM) balance, which reached $10.5 trillion (up 15% year over year). Further, significant improvement in performance fees offered support.
The surge in AUM was driven by a robust equity market performance in the first quarter. As the market participants turned bullish on the expectations of interest rate cuts this year, the global equity markets rallied.
BlackRock witnessed long-term net inflows of $76 billion during the quarter, though this was somewhat offset by outflows in the cash management strategies. Hence, net inflows were $56 billion in the first quarter. Another reason for heavy inflows during the quarter was the introduction of spot ETFs by the company, which was a success.
Thus, BlackRock’s investment advisory and administration fees (the main and largest revenue component) grew 9% from the prior-year period to $3.63 billion.
Additionally, performance fees jumped substantially from $55 million in last year’s quarter to $204 million.
Operating Income Rises
Total expenses were $3.04 billion, rising 8%. The uptick was mainly due to an increase in employee compensation and benefits, which was up 11%.
Further, non-operating income (on a GAAP basis) was $220 million, surging 90%.
Hence, this Zacks Rank #1 (Strong Buy) company’s adjusted operating income of $1.78 billion climbed 17% from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Invesco (IVZ - Free Report) is scheduled to announce first-quarter 2024 numbers on Apr 23. It has a Zacks Rank of 2 (Buy).
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. The stock also sports a Zack Rank #1.
Over the past 30 days, the Zacks Consensus Estimate for TROW’s quarterly earnings has moved 4.8% upward to $1.96. The figure indicates 16% growth from the prior-year quarter.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
BlackRock (BLK) Q1 Earnings Top, AUM Touches $10.5 Trillion
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 also reflected a jump of 24% from the year-ago quarter.
Further, BLK’s total revenues (on a GAAP basis) of $4.72 billion beat the Zacks Consensus Estimate of $4.69 billion. The figure also increased 11% year over year.
The primary driver for the increase in top line was the record assets under management (AUM) balance, which reached $10.5 trillion (up 15% year over year). Further, significant improvement in performance fees offered support.
BlackRock, Inc. Price, Consensus and EPS Surprise
BlackRock, Inc. price-consensus-eps-surprise-chart | BlackRock, Inc. Quote
Higher AUM Drives Revenue Growth
The surge in AUM was driven by a robust equity market performance in the first quarter. As the market participants turned bullish on the expectations of interest rate cuts this year, the global equity markets rallied.
BlackRock witnessed long-term net inflows of $76 billion during the quarter, though this was somewhat offset by outflows in the cash management strategies. Hence, net inflows were $56 billion in the first quarter. Another reason for heavy inflows during the quarter was the introduction of spot ETFs by the company, which was a success.
Thus, BlackRock’s investment advisory and administration fees (the main and largest revenue component) grew 9% from the prior-year period to $3.63 billion.
Additionally, performance fees jumped substantially from $55 million in last year’s quarter to $204 million.
Operating Income Rises
Total expenses were $3.04 billion, rising 8%. The uptick was mainly due to an increase in employee compensation and benefits, which was up 11%.
Further, non-operating income (on a GAAP basis) was $220 million, surging 90%.
Hence, this Zacks Rank #1 (Strong Buy) company’s adjusted operating income of $1.78 billion climbed 17% from the prior-year quarter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Upcoming Earnings Releases & Earnings Expectations
Invesco (IVZ - Free Report) is scheduled to announce first-quarter 2024 numbers on Apr 23. It has a Zacks Rank of 2 (Buy).
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. The stock also sports a Zack Rank #1.
Over the past 30 days, the Zacks Consensus Estimate for TROW’s quarterly earnings has moved 4.8% upward to $1.96. The figure indicates 16% growth from the prior-year quarter.