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.
With about 19,800 employees globally, BlackRock remains a strong player in the financial sector. Its growth and innovation are solidifying its position as a leader in asset management.
BlackRock Fiscal Q4 2024
BlackRock (BLK) announced its financial results for the year 2024. The company’s Q4 earnings report exceeded expectations with a 23% year-over-year revenue growth to $5.68 billion, surpassing the forecasted $5.53 billion.
For the full year 2024:
- Diluted EPS was $42.01, or $43.61 as adjusted.
- The company reported $11.6 trillion in assets under management (AUM), driven by a record $641 billion in net inflows. With $281 billion in the fourth quarter alone.
- Annual revenue increased by 14%, fueled by market impacts on average AUM, organic base fee growth, fees from the GIP Transaction, and higher performance and technology service fees.
- Operating income increased by 21% (23% as adjusted).
- Diluted EPS increased by 15%, despite lower non-operating income and a higher effective tax rate.
In the fourth quarter of 2024:
- Diluted EPS was $10.63, or $11.93 as adjusted.
BlackRock returned $4.7 billion to shareholders in 2024, including $1.6 billion from share repurchases. The firm also confirmed the previously announced acquisition of HPS Investment Partners, expected to add approximately $220 billion in pro-forma client assets and enhance their private credit offerings.
Board Statements
Laurence D. Fink, Chairman and CEO of BlackRock, shared that BlackRock gained a record $641 billion in new investments in 2024, with $281 billion coming in the fourth quarter. They made some big moves with acquisitions like GIP and plan to buy HPS and Preqin, which will strengthen their private markets and data services.
While many companies see less client interest during mergers, BlackRock saw more activity. This led to a 7% increase in base fees and 12% growth in tech services. They earned $20 billion in revenue for the year, up 14% from 2023, with their operating income growing by 23% and a top margin of 44.5%.
BlackRock’s strong team and leadership have driven their success. Since their IPO 25 years ago, they’ve provided shareholders a 21% annual return, compared to 8% in the S&P 500. The company is optimistic about its growth potential in 2025.
Impact on the Market
Overall, BlackRock demonstrated strong financial performance and strategic growth through significant inflows, revenue growth, and key acquisitions.
BLK rose by 4% following the release of their Q4 2024 earnings report. Investors were particularly impressed by the company’s record net inflows of $641 billion for the year, including $281 billion in the fourth quarter, and the 14% increase in annual revenue. The strong financial performance and positive outlook contributed to the stock’s rise.
