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) Q1 Earnings Miss as AUM Declines, Costs Rise
Read MoreHide Full Article
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago quarter’s number.
Results were primarily hurt because of an increase in expenses. Moreover, long-term net outflows resulted in a decline in assets under management (AUM), which was a negative for the company. Nevertheless, higher revenues supported results to some extent.
Net income attributable to BlackRock (on a GAAP basis) was $806 million, down 23.5% from the prior-year quarter.
Revenues Improve, Expenses Rise
Revenues for the reported quarter (on a GAAP basis) were $3.71 billion, increasing 10.9% year over year. The upside stemmed from an increase in all components of revenues. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $3.58 billion.
Total expenses amounted to $3.03 billion, up 43.2% year over year. The increase was due to a rise in all cost components.
Non-operating expense (on a GAAP basis) was $71 million against non-operating income of $125 million recorded in the year-ago quarter.
BlackRock’s adjusted operating income was $1.27 billion, up 3.2% year over year.
AUM Declines due to Net Outflows
As of Mar 31, 2020, AUM totaled $6.47 trillion, reflecting a decline of nearly 1% year over year. In the reported quarter, the company witnessed long-term net outflows of $18.66 billion.
Our Viewpoint
BlackRock’s acquisitions and expansion efforts along with initiatives to restructure its actively managed equity business are expected to boost the top line and AUM. However, an increase in operating expenses (as witnessed in the first quarter as well) might hurt the bottom line to an extent in the near term.
Earnings Release Schedule of Other Finance Companies
Community Bank System (CBU - Free Report) is scheduled to release quarterly results on Apr 20, while Atlantic Capital Bancshares will report earnings on Apr 23. FB Financial Corporation (FBK - Free Report) is scheduled to release results on Apr 27.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
BlackRock (BLK) Q1 Earnings Miss as AUM Declines, Costs Rise
BlackRock, Inc.’s (BLK - Free Report) first-quarter 2020 adjusted earnings of $6.60 per share lagged the Zacks Consensus Estimate of $6.69. The figure was marginally lower than the year-ago quarter’s number.
Results were primarily hurt because of an increase in expenses. Moreover, long-term net outflows resulted in a decline in assets under management (AUM), which was a negative for the company. Nevertheless, higher revenues supported results to some extent.
Net income attributable to BlackRock (on a GAAP basis) was $806 million, down 23.5% from the prior-year quarter.
Revenues Improve, Expenses Rise
Revenues for the reported quarter (on a GAAP basis) were $3.71 billion, increasing 10.9% year over year. The upside stemmed from an increase in all components of revenues. Moreover, the reported figure surpassed the Zacks Consensus Estimate of $3.58 billion.
Total expenses amounted to $3.03 billion, up 43.2% year over year. The increase was due to a rise in all cost components.
Non-operating expense (on a GAAP basis) was $71 million against non-operating income of $125 million recorded in the year-ago quarter.
BlackRock’s adjusted operating income was $1.27 billion, up 3.2% year over year.
AUM Declines due to Net Outflows
As of Mar 31, 2020, AUM totaled $6.47 trillion, reflecting a decline of nearly 1% year over year. In the reported quarter, the company witnessed long-term net outflows of $18.66 billion.
Our Viewpoint
BlackRock’s acquisitions and expansion efforts along with initiatives to restructure its actively managed equity business are expected to boost the top line and AUM. However, an increase in operating expenses (as witnessed in the first quarter as well) might hurt the bottom line to an extent in the near term.
BlackRock, Inc. Price, Consensus and EPS Surprise
BlackRock, Inc. price-consensus-eps-surprise-chart | BlackRock, Inc. Quote
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 Release Schedule of Other Finance Companies
Community Bank System (CBU - Free Report) is scheduled to release quarterly results on Apr 20, while Atlantic Capital Bancshares will report earnings on Apr 23. FB Financial Corporation (FBK - Free Report) is scheduled to release results on Apr 27.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>