TLDR
BlackRock stock rose about 3% to 4% premarket Wednesday, trading near $1,100 after Q3 results.
Adjusted EPS was $15.93 versus the $14.30 estimate, and revenue was $7.75 billion versus $7.43 billion expected.
Assets under management rose 15% to $15.5 trillion, helped by $205 billion of net inflows in the quarter.
Adjusted operating margin expanded to 47.8% from 44.6% a year ago.
BLK closed Tuesday at $1,066.12, down 1.64%.
BlackRock (BLK) stock was higher in premarket trading Wednesday after the asset manager reported third-quarter results that topped Wall Street estimates. BLK was changing hands near $1,100 to $1,103, up roughly 3% to 4% from Tuesday’s close of $1,066.12.
The move follows a down day. BLK fell 1.64%, or $17.80, in the prior session.
Adjusted earnings per share came in at $15.93. Analysts had expected $14.30.
Revenue reached $7.75 billion, ahead of the $7.43 billion consensus. That is 19% higher than the same quarter last year.
Adjusted net income was $2.62 billion, up 37% from a year ago. Wall Street was looking for $2.38 billion, so the beat was not close.
On a GAAP basis, diluted EPS was $10.57. That compares with $8.43 in the prior-year quarter, a 25% increase.
Inflows and Assets
Clients sent $205 billion of net inflows to BlackRock in the quarter. The money came from iShares ETFs, systematic active equities, private markets and cash management.
Long-term net inflows were $175 billion. Of that, $135 billion went into ETFs and $66 billion into active strategies.
Those flows helped drive 11% annualized organic base fee growth. Over the last twelve months, net inflows totaled $869 billion.
Assets under management hit $15.49 trillion. A year ago the figure was $13.5 trillion, which puts the gain at 15%.
Margins and Other Revenue Lines
Adjusted operating income rose 27% from a year earlier to $3.33 billion. The adjusted operating margin widened to 47.8%, up from 44.6%.
Technology services and subscription revenue grew 14% to $588 million. The company pointed to continued demand for Aladdin and multi-product solutions.
Investment advisory performance fees were $630 million. That is up from $516 million a year ago, mostly on higher revenue from liquid alternative products.
BlackRock also reported solid fund performance. About 92% of systematic equity assets and 71% of taxable fixed income assets were above benchmark or peer median over one year.
CEO Larry Fink said the results show the value of the firm’s integrated platform. He noted that adjusted EPS rose more than 35% from last year.
BLK was trading at $1,103.00 in premarket action, up $36.88 or 3.46%, as of late morning London time Wednesday.
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