BlackRock Q2 Earnings: ETF Boom, Record Inflows And Private Market Drive Growth

Investment giant BlackRock, Inc. BLK shares are trading higher after the company reported second-quarter FY24 results.

Revenue growth of 8% Y/Y to $4.805 billion, missing the consensus of $4.849 billion. 

Investment advisory, administration fees, and securities lending revenues increased to $3.875 billion from $3.611 billion a year ago, led by positive organic base fee growth and the impact of market beta on average AUM.

Technology services revenue increased to $395 million from $359 million the prior year, reflecting continued demand for Aladdin technology offerings.

Related: BlackRock’s Aladdin Gets Smarter: $3.2B Deal Adds Preqin’s Private Markets Data

BLK stated that the net inflow stood at $82 billion in the quarter, resulting in a 3% organic base fee growth.

Laurence D. Fink, Chairman, and CEO said, “Organic growth was driven by private markets, retail active fixed income, and surging flows into our ETFs, which had their best start to a year on record.”

Read: BlackRock’s Bitcoin ETF Dominates Market with Nearly $20B in Assets: Report

Adjusted operating income rose 12% Y/Y to $1.88 billion, with the margin expanding to 44.1% from 42.5% a year ago.

Adjusted EPS increased 12% Y/Y to $10.36, beating the consensus of $9.93.

Total AUM stood at $10.6 trillion in AUM, up $1.2 trillion year-over-year, driven by consistent organic growth and positive market movements.

BLK’s Board of Directors paid a quarterly cash dividend per share of $5.10 and repurchased shares worth $500 million in the quarter. 

Fink added, “We are on pace to close our planned acquisition of Global Infrastructure Partners in the third quarter of 2024, which is expected to double private markets base fees and add approximately $100 billion of infrastructure AUM. And just a few weeks ago, we announced our agreement to acquire Preqin, a leading private markets data provider.”

Also Read: BlackRock’s Preqin Acquisition To Drive Revenue Synergies: Analyst Sees Expansion In Emerging Private Markets

Investors can gain exposure to the stock via Fidelity Disruptive Finance ETF FDFF and Schwab US Dividend Equity ETF SCHD.

Price Action: BLK shares are up 0.60% at $832.90 premarket at the last check Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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