BlackRock Q2: Bottomline Beat, Net Inflow Strong At $80B, Continued Strength In Bond ETF Inflow

BlackRock Inc BLK reported a Q2 revenue decline of 1% Y/Y to $4.46 billion, slightly below the consensus of $4.47 billion.

Revenue was impacted by market movements over the past twelve months on average assets under management (AUM).

Investment advisory, administration fees, and securities lending revenues declined to $3.61 billion from $3.69 billion.

Total net inflows stood at $80.2 billion (vs. $89.6 billion a year ago), reflecting the continued strength of a broad-based platform with favorable momentum across client types and geographies.

Adjusted operating income declined 3% Y/Y to $1.68 billion, with margins contracting to 42.5% from 43.7% a year ago.

Adjusted EPS rose 26% Y/Y to $9.28, beating the consensus of $8.46.

Total AUM were $9.43 trillion as of June 30, 2023, vs. $8.49 trillion as of June 30, 2022.

The company repurchased shares worth $375 million in Q2.

Laurence D. Fink, Chairman and CEO, said, "As highlighted at our recent investor day, we are in the early stages of clients consolidating their investment management and technology requirements with comprehensive platforms that deliver the performance they need. Wealth and institutional clients across regions continue to turn to BlackRock for solutions across their whole portfolio – driving second quarter net inflows across ETFs with $48 billion, cash with $23 billion and active with $4 billion. We delivered technology services revenue and ACV growth as clients leverage Aladdin to support their investment processes. Clients are looking to do more with Aladdin, and approximately half of 2023 mandates have been across multiple technology offerings."

Price Action: BLK shares are trading lower by 0.92% at $733.00 premarket on the last check Friday.