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BlackRock (BLK) Q2 Earnings Top Estimates as AUM Hits $1.65T
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BlackRock’s (BLK - Free Report) 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.
Shares of BLK are trending almost 1.5% higher in the pre-market trading session today.
The results benefited from a rise in revenues. Assets under management (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.
Our View
BLK’s continued efforts to strengthen the iShares and ETF operations, initiatives to restructure the actively managed equity business and strategic expansion efforts are expected to support financials. The planned acquisitions of Global Infrastructure Partners and Preqin 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 second-quarter 2024 numbers on Jul 23.
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has remained unchanged at 41 cents. Also, the figure implies a jump of 32.3% from the prior-year reported number.
T. Rowe Price Group, Inc. (TROW - Free Report) is slated to report second-quarter 2024 results on Jul 26.
Over the past 30 days, the Zacks Consensus Estimate for TROW’s quarterly earnings has moved 1.4% north to $2.24. The figure indicates 10.9% growth from the prior-year quarter.
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BlackRock (BLK) Q2 Earnings Top Estimates as AUM Hits $1.65T
BlackRock’s (BLK - Free Report) 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.
Shares of BLK are trending almost 1.5% higher in the pre-market trading session today.
The results benefited from a rise in revenues. Assets under management (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.
Our View
BLK’s continued efforts to strengthen the iShares and ETF operations, initiatives to restructure the actively managed equity business and strategic expansion efforts are expected to support financials. The planned acquisitions of Global Infrastructure Partners and Preqin 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 has 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 (IVZ - Free Report) is scheduled to announce second-quarter 2024 numbers on Jul 23.
Over the past month, the Zacks Consensus Estimate for IVZ’s quarterly earnings has remained unchanged at 41 cents. Also, the figure implies a jump of 32.3% from the prior-year reported number.
T. Rowe Price Group, Inc. (TROW - Free Report) is slated to report second-quarter 2024 results on Jul 26.
Over the past 30 days, the Zacks Consensus Estimate for TROW’s quarterly earnings has moved 1.4% north to $2.24. The figure indicates 10.9% growth from the prior-year quarter.