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 (BLK) Gains on Q1 Earnings Beat, Cost Decline
Read MoreHide Full Article
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
Shares of BLK gained 1.5% in the pre-market trading. However, the full day’s trading session will depict a clearer picture.
Results have benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were major headwinds.
Net income attributable to BlackRock (on a GAAP basis) was $1.16 billion, down 19.4% from the prior-year quarter. We had projected the metric to be $1.07 billion.
Revenues & Expenses Decline
Revenues (on a GAAP basis) were $4.24 billion, marginally beating the Zacks Consensus Estimate of $4.23 billion. However, the top line declined 9.7% year over year. The decline stemmed from a decrease in all components of revenues. Our estimate for GAAP revenues was $4.17 billion.
Total expenses amounted to $2.81 billion, down 4.4% from the prior-year quarter. The decline was due to a fall in all cost components, except for general and administrative expenses. Our estimate for expenses was $2.79 billion.
Non-operating income (on a GAAP basis) was $116 million against non-operating expenses of $138 million in the year-ago quarter.
BlackRock’s adjusted operating income was $1.51 billion, down 17.1% from the prior-year period.
AUM Balance Dips
As of Mar 31, 2023, AUM totaled $9.09 trillion, reflecting a year-over-year fall of 5%. Our estimate for AUM was $8.07 trillion. In the reported quarter, the company witnessed long-term net inflows of $103 billion.
Average AUM of $8.90 trillion as of Mar 31, 2023, declined 7.9% year over year.
Share Repurchase Update
BlackRock repurchased shares worth $375 million.
Our View
BLK’s continued efforts to strengthen iShares and ETF operations, along with its initiatives to restructure the actively-managed equity business, are expected to continue to aid growth. However, the uncertain markets and volatility on the back of macroeconomic concerns have led to an unfavorable operating backdrop for the company.
Earnings Dates & Expectations of Other Asset Managers
Invesco Ltd. (IVZ - Free Report) is scheduled to announce first-quarter 2023 numbers on Apr 25.
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has moved 3% northward to 34 cents. However, it implies a 39.3% decline from the prior-year reported number.
Ameriprise Financial, Inc. (AMP - Free Report) is slated to report first-quarter 2023 results on Apr 24.
Over the past 30 days, the Zacks Consensus Estimate for AMP’s quarterly earnings has moved marginally higher to $7.16. The figure indicates a 19.7% rise from the prior-year quarter.
See More Zacks Research for These Tickers
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
BlackRock (BLK) Gains on Q1 Earnings Beat, Cost Decline
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2023 adjusted earnings of $7.93 per share surpassed the Zacks Consensus Estimate of $7.71. However, the figure reflects a decrease of 16.7% from the year-ago quarter. Our estimate for adjusted earnings was $7.37.
Shares of BLK gained 1.5% in the pre-market trading. However, the full day’s trading session will depict a clearer picture.
Results have benefited from a decline in expenses. However, lower revenues and assets under management (AUM) balance were major headwinds.
Net income attributable to BlackRock (on a GAAP basis) was $1.16 billion, down 19.4% from the prior-year quarter. We had projected the metric to be $1.07 billion.
Revenues & Expenses Decline
Revenues (on a GAAP basis) were $4.24 billion, marginally beating the Zacks Consensus Estimate of $4.23 billion. However, the top line declined 9.7% year over year. The decline stemmed from a decrease in all components of revenues. Our estimate for GAAP revenues was $4.17 billion.
Total expenses amounted to $2.81 billion, down 4.4% from the prior-year quarter. The decline was due to a fall in all cost components, except for general and administrative expenses. Our estimate for expenses was $2.79 billion.
Non-operating income (on a GAAP basis) was $116 million against non-operating expenses of $138 million in the year-ago quarter.
BlackRock’s adjusted operating income was $1.51 billion, down 17.1% from the prior-year period.
AUM Balance Dips
As of Mar 31, 2023, AUM totaled $9.09 trillion, reflecting a year-over-year fall of 5%. Our estimate for AUM was $8.07 trillion. In the reported quarter, the company witnessed long-term net inflows of $103 billion.
Average AUM of $8.90 trillion as of Mar 31, 2023, declined 7.9% year over year.
Share Repurchase Update
BlackRock repurchased shares worth $375 million.
Our View
BLK’s continued efforts to strengthen iShares and ETF operations, along with its initiatives to restructure the actively-managed equity business, are expected to continue to aid growth. However, the uncertain markets and volatility on the back of macroeconomic concerns have led to an unfavorable operating backdrop for the company.
BlackRock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Earnings Dates & Expectations of Other Asset Managers
Invesco Ltd. (IVZ - Free Report) is scheduled to announce first-quarter 2023 numbers on Apr 25.
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has moved 3% northward to 34 cents. However, it implies a 39.3% decline from the prior-year reported number.
Ameriprise Financial, Inc. (AMP - Free Report) is slated to report first-quarter 2023 results on Apr 24.
Over the past 30 days, the Zacks Consensus Estimate for AMP’s quarterly earnings has moved marginally higher to $7.16. The figure indicates a 19.7% rise from the prior-year quarter.