BlackRock (BLK) Tops Q1 EPS by 33c

BlackRock (NYSE: BLK) reported Q1 EPS of $4.89, $0.33 better than the analyst estimate of $4.56. Revenue for the quarter came in at $2.72 billion versus the consensus estimate of $2.81 billion.

“In the first quarter, BlackRock’s diverse investment platform and relentless focus on clients and performance drove long-term net inflows of $70 billion,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “This was one of the most broadly diverse flow quarters in BlackRock’s history. Flows were positive across all long-term asset classes, client types, regions and investment styles, with active net inflows of $32 billion and index net inflows of $38 billion. Our $252 billion of net new inflows over the last twelve months and continued strong growth in Aladdin allowed us to achieve year-over-year revenue growth despite the level of transaction-related revenue in last year’s first quarter and significant foreign exchange headwinds, which reduced the value of our non-dollar denominated base fees.

“In the face of divergent financial markets, investors continue to search for yield, and BlackRock’s highly diversified global fixed income platform again delivered strong returns for our clients. With 91% of our taxable fixed income assets above benchmark or peer median for the 3-year period, we remain well positioned to benefit from ongoing changes in the fixed income landscape.

“Institutional long-term net inflows of $21 billion were our highest since the BGI acquisition, reflecting strong demand for customized investment solutions. We partnered with leading global institutions to address their specific objectives through a combination of investment management expertise, robust portfolio construction and superior risk management. Alternatives remain an important component of BlackRock’s solutions capabilities and we raised another $2 billion of alternatives commitments during the quarter, giving us more than $10 billion in committed capital to deploy for clients. We also announced a landmark public-private infrastructure investment partnership in Mexico, which will finance two natural gas pipelines critical to the region’s continued economic growth.

“In iShares, we saw net inflows of $35 billion, driven by broad-based European flows and strength in our global fixed income franchise. Our iShares platform continues to grow on multiple fronts: our Core series for buy-and-hold investors, our offering of precision exposures for asset allocators, and our financial instruments for capital markets investors. BlackRock’s global Retail business continued to benefit from stronger distribution, a broader product suite and enhanced brand investment, and generated more than $14 billion of long-term net inflows.

“We are confident that our platform, our distribution, our client relationships and our long-term focus position BlackRock to continue to execute on behalf of clients in an ever-changing investment landscape. I would like to once again express my gratitude to BlackRock employees for their commitment to excellence. Together, we look forward to continuing to drive results for our clients and shareholders.”

For earnings history and earnings-related data on BlackRock (BLK) click here.

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