Why Investment Management Company BlackRock's Shares Are Slipping Today

BlackRock Inc BLK reported third-quarter FY23 revenue growth of 4.9% Y/Y to $4.52 billion, driven by organic growth, impact of market movements over the past twelve months on average AUM and higher technology services revenue. Revenue marginally missed the consensus of $4.54 billion.

Investment advisory, administration fees, and securities lending revenues increased to $3.68 billion from $3.53 billion in 3Q22.

Technology services revenue increased by 20.4% Y/Y to $407 million, reflecting sustained demand for Aladdin and several large eFront renewals.

BLK stated that the quarterly total net inflow of $3 billion is attributed to a net outflow of $49 billion from institutional index equity strategies with lower fees.

Adjusted operating income rose 7% Y/Y to $1.69 billion, with margin expanding 30 bps to 42.3%.

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Adjusted EPS increased 14% Y/Y to $10.91, beating the consensus of $8.26.

Total AUM stood at $9.10 trillion as of September 30, 2023, compared to $7.9 trillion in 3Q22.

The company repurchased shares worth $375 million in Q3.

Laurence D. Fink, Chairman and CEO, commented, “The long-term trend of clients consolidating more of their portfolios with BlackRock is only accelerating, and underlying business momentum remains strong. In the first nine months of 2023, clients turned to BlackRock for solutions across their whole portfolio, driving net inflows of $98 billion in ETFs, $65 billion in active and $46 billion in cash.”

Price Action: BLK shares are trading lower by 2.54% at $620.00 premarket on the last check Friday.