BlackRock Q2 revenue beats estimates on base fees and inflow strength

BlackRock, Inc.

BlackRock, Inc.

BLK

0.00


Overview

  • US asset manager's Q2 revenue rose 31% yr/yr, beating analyst expectations

  • Diluted EPS for Q2 increased 20% yr/yr, driven by higher base fees and inflows

  • Company announced $450 mln share repurchase in the current quarter


Outlook

  • Company did not provide specific guidance for the current quarter or full year in its press release


Result Drivers

  • BASE FEES AND INFLOWS - Co attributed revenue growth to higher base fees, positive market performance, and strong inflows, especially in ETFs and technology-driven solutions

  • TECHNOLOGY REVENUE - 13% yr/yr growth in technology services and subscription revenue, driven by continued momentum in Aladdin and multi-product solutions

  • CLIENT ACTIVITY - Co said higher margins and accelerating momentum in client activity contributed to results


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$7.08 bln

$6.72 bln (8 Analysts)

Q2 EPS

$12.19

Q2 Net Income

$1.91 bln

Q2 Assets Under Management

$15.3 trillion


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

  • Wall Street's median 12-month price target for BlackRock Inc is $1,260.00, about 22.9% above its July 14 closing price of $1,025.44

  • The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 17 three months ago


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