BlackRock (NYSE:BLK) shares moved higher in premarket trading on Wednesday after the world’s largest asset manager reported stronger-than-expected second-quarter results, supported by record client inflows and continued growth across its investment platform.
Earnings and revenue exceed expectations
BlackRock reported second-quarter earnings per share of 13.91 dollars, comfortably ahead of analysts’ expectations of 12.57 dollars.
Revenue increased to 7.08 billion dollars, surpassing the consensus forecast of 6.72 billion dollars and representing year-on-year growth of 31 percent.
The company attributed the increase to favourable market conditions, organic growth in base fees, contributions from its HPS acquisition, higher performance fees and stronger technology services and subscription revenue.
Assets under management hit a new high
Assets under management climbed to a record 15.3 trillion dollars, an increase of 22 percent from a year earlier.
Over the past 12 months, BlackRock attracted 868 billion dollars of net inflows while delivering 10 percent organic base fee growth.
During the first half of the year, the company generated record net inflows of 321 billion dollars, including 192 billion dollars in the second quarter alone. Growth was broad-based across exchange-traded funds, private markets, active fixed income and systematic equity strategies.
Profitability continues to improve
Adjusted operating income increased 39 percent to 2.92 billion dollars during the quarter.
Adjusted operating margin expanded to 45.9 percent from 43.3 percent in the same period last year, reflecting the benefits of higher revenue and operating leverage.
Chairman and Chief Executive Officer Laurence D. Fink said: “Market fundamentals are strong and well supported, with higher margins and earnings momentum catalyzed by new technology.”
He added: “Our momentum is accelerating, and I’ve never been more optimistic about the growth ahead.”
Share buybacks increase
BlackRock repurchased 450 million dollars of its own shares during the second quarter.
The company also announced plans to increase the pace of its quarterly share repurchase programme to 550 million dollars, signalling continued confidence in its financial outlook and capital allocation strategy.
BlackRock stock price
