BlackRock's EPS rises 10% on annual scale

Business 7/17/2017, 12:44 PM
BlackRock's EPS rises 10% on annual scale

Long-term net inflows in the second quarter of $96.2 billion and $6.2 billion from clients in the Americas and Asia-Pacific regions, respectively, were partially offset by net outflows of $8.9 billion from clients in Europe, Middle East and Asia (EMEA), BlackRock Inc. said on Monday. The asset manager reported record $94 billion of long-term net inflows and an overall $104 billion. Assets under management rose by $269 billion quarter on quarter, to $5.69 trillion.

Diluted earnings per share grew 10% to $5.22, or to $5.24 as adjusted, on revenue of $2.97 billion, a rise of 6% year over year. Net income was lifted 9% to $857 million in GAAP terms, or 8% to $860 when one-off items are excluded. The operating margin inched 10 basis points up to 41.9% and came in unchanged at 43.9%, respectively, the statement showed. The cash dividend was lifted by 21 cents on an annual basis, to $2.5, matching the previous quarter. Technology and risk management revenue grew 12% and the company repurchased shares worth $275 million. BlackRock slipped 0.31% in premarket trade, to $438.34. The consensus in forecasts was for earnings of $5.4 per share.

"Active strategies generated $8 billion of net inflows, led by multi-asset, fixed income and alternative offerings, contributing to strong organic base fee growth this quarter. We’ve seen strong fundraising momentum in illiquid alternatives, with $9 billion in flows and commitments year-to-date, as the investments we’ve made in our platform over time are resonating with clients," said Laurence Fink, chairman and chief executive.

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