BlackRock, Inc., founded in 1988, stands as the world’s largest asset management firm, with headquarters in New York City. Under the leadership of Larry Fink, the company has grown to manage approximately $11.5 trillion in assets as of 2024. BlackRock offers a wide range of investment services including mutual funds, exchange-traded funds (ETFs), and risk management solutions, making a significant impact on global financial markets. Also, the company, known for its iShares ETF product line, BlackRock is committed to advancing shareholder democracy and investing in the transition to a low-carbon economy. Additionally, with around 19,800 employees worldwide, BlackRock continues to drive innovation and growth in the financial sector, solidifying its position as a leading force in asset management.
BlackRock Fiscal Q3 2024
In Q3 2024, BlackRock reported adjusted earnings per share (EPS) of $11.46, surpassing the forecasted EPS of $10.341. Meanwhile, the company’s revenue reached $5.2 billion, a 15% increase year-over-year, driven by higher average assets under management (AUM) and organic base fee growth. This performance exceeded analysts’ expectations and highlighted BlackRock’s continued financial strength and market resilience.
Here are the highlights of BlackRock’s Q3 earnings:
- $360 billion in net inflows year-to-date, surpassing 2022 and 2023 full-year net inflows.
- $221 billion in quarterly net inflows, representing 8% annualized organic asset growth.
- $11.5 trillion in Asset Under Management (AUM), up $2.4 trillion year-over-year, driven by $456 billions of net inflows and positive market movements.
- 15% increase in revenue year-over-year, fueled by market impacts on average AUM, organic base fee growth, and higher performance fees.
- 23% increase in operating income year-over-year (26% as adjusted).
- 2% increase in diluted EPS year-over-year (5% as adjusted), reflecting a higher effective tax rate in the current quarter.
- $375 million in share repurchases during the current quarter.
Also, closed acquisition of Global Infrastructure Partners (GIP) on October 1st, adding $116 billions of client AUM and $70 billions of fee-paying AUM.
Board Statements
Laurence D. Fink, Chairman and CEO of BlackRock, reported ambitious and successful strategies, highlighting a record $11.5 trillion in managed assets and $456 billion in net inflows over the past year, with $221 billion in the third quarter alone. Notable achievements include 5% growth in organic base fees and a 15% increase in technology services ACV. Also, Both quarterly revenue and operating income set new records, rising by 15% and 26% year-over-year, respectively. The operating margin increased to 45.8%.
Fink emphasized the evolution of BlackRock’s private markets capabilities and the strategic acquisition of Global Infrastructure Partners (GIP). The company also plans to acquire Preqin to enhance data and risk analytics for private markets. BlackRock’s commitment to clients, a growth mindset, and ongoing evolution have led to a compounded annual total return of over 20% for shareholders since its IPO. Fink expressed optimism about future opportunities and growth prospects.
Impact on the Market
Following BlackRock’s Q3 earnings report on October 11, 2024, the company’s stock (BLK) saw a positive response. The strong financial results, including a 15% year-over-year revenue growth to $5.2 billion and a record $11.5 trillion in assets under management (AUM), exceeded analysts’ expectations. Additionally, the adjusted earnings per share (EPS) increased by 5% year-over-year, further boosting investor confidence.
Overall, the impressive performance and optimistic outlook led to a rise in BlackRock’s stock price as investors reacted favorably to the company’s continued growth and strategic initiatives.
BLK rose 3% after earning reports released.
