BlackRock Earnings Beat Expectations. The Stock Is Down.

2 weeks ago 6

Text size

BlackRock banal has gained astir 26% twelvemonth to date.

Jeenah Moon/Bloomberg

BlackRock’s second-quarter net jumped 28% to $10.03 a share, helped by beardown interest maturation and gross from exertion services, the concern absorption behemoth reported.

Assets successful its iShares exchange-traded money franchise jumped to $3 trillion from $2.8 trillion successful March. BlackRock (ticker: BLK) presently has astir 35% of the planetary ETF marketplace of $8 trillion, according to Edward D. Jones, and has forecast that ETF assets globally volition scope $15 trillion by 2025.

Total assets stood astatine $9.5 trillion, up from $7.3 trillion a twelvemonth earlier. BlackRock is the world’s largest concern absorption company.

For the 2nd quarter, net climbed to $1.55 cardinal connected gross of $4.82 billion. Last year, BlackRock earned $1.2 billion, oregon $7.77 a share, connected gross of $4.39 billion.

Analysts connected mean had expected BlackRock to study $1.44 billion, oregon $9.42 a share, connected gross of $4.58 billion, according to Bloomberg.  

In a statement, BlackRock CEO Larry Fink said: “BlackRock’s broad concern and exertion level continues to germinate up of our clients’ needs. Strong annualized integrated basal interest maturation of 10% successful the 2nd 4th was driven by our top-performing progressive level and industry-leading iShares ETF franchise. We besides delivered 14% year-over-year maturation successful exertion services revenue.”

BlackRock had a broad investor day past month, with iShares, the company’s Aladdin division, sustainable investing, and alternate investing each reporting bully growth.

In a study aft today’s earnings, Edward D. Jones expert Kyle Sanders wrote: “Results were strong, with broad-based spot crossed the business. While rising markets are ever helpful, we judge BlackRock is champion positioned to capitalize connected almighty shifts occurring successful the plus absorption industry. Trillions of dollars are up for grabs implicit the adjacent decade, and we judge BlackRock’s enactment successful cardinal high-growth categories specified arsenic ETFs, technology, alternate assets and sustainable investing volition proceed to enactment industry-leading travel maturation implicit the agelong term.”

Shares of BlackRock were down 1.4% successful Wednesday’s premarket trading. The banal has gained astir 26% twelvemonth to date.

Write to Leslie P. Norton astatine leslie.norton@barrons.com

Read Entire Article