A month has gone by since the last earnings report for BlackRock (BLK Quick QuoteBLK - Free Report) . Shares have added about 1.3% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is BlackRock due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

BlackRock Q2 Earnings Top Estimates as AUM Hits $1.65T

BlackRock’s second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflects a rise of 12% from the year-ago quarter.

The results benefited from a rise in revenues. AUM witnessed solid improvement driven by net inflows and market appreciation. However, higher expenses and a fall in non-operating income acted as headwinds.

Net income attributable to BlackRock (on a GAAP basis) was $1.5 billion, increasing 9% from the prior-year quarter. We had projected the metric to be $1.43 billion.

Revenues Improve, Expenses Rise

Revenues (on a GAAP basis) in the quarter were $4.81 billion, lagging the Zacks Consensus Estimate of $4.86 billion. However, the figure increased 8% year over year. The rise was mainly driven by higher total investment advisory, administration fees and securities lending revenues, investment advisory performance fees and technology services revenues.

Total expenses amounted to $3.01 billion, rising 6%. The uptick was mainly due to a rise in all cost components. Our estimate for expenses was $3.05 billion.

Non-operating income (on a GAAP basis) was $214 million, down 15%. Our estimate for non-operating income was $216.8 million.

BlackRock’s adjusted operating income was $1.88 billion, climbing 12% from the prior-year quarter.

AUM Balance Up

As of Jun 30, 2024, AUM totaled $10.65 trillion, reflecting a year-over-year increase of 13%. Our estimate for AUM was $10.2 trillion. In the reported quarter, the company witnessed long-term net inflows of $51 billion.

Average AUM of $10.46 trillion as of Jun 30, 2024, rose 14% year over year. We had projected the average AUM to be $10.3 trillion.

Share Repurchase Update

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

Outlook

Excluding the impact of GIP, Preqin and the related transaction costs, core G&A expenses in 2024 are anticipated to increase in the low to mid-single digit percentage range.

Excluding the impact of the GIP transaction, the company expects its headcount to be broadly flat in 2024.

Over the long term, the company expects low to mid-teens growth in annual contract value (ACV).

The projected tax run rate for the remainder of 2024 is 25%.

The company continues to expect at least $375 million of share repurchases per quarter for the balance of 2024.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates flatlined during the past month.

VGM Scores

At this time, BlackRock has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

BlackRock has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.