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BlackRock (BLK) Q1 Earnings Top, AUM Touches $10.5 Trillion

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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 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 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.

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