BlackRock's Steady Climb: Q3 Earnings Beat Projections, Assets Under Management Soars To $11.5T

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

Revenue growth of 15% Y/Y to $5.197 billion, beating the consensus of $5.007 billion. Investment advisory, administration fees, and securities lending revenues increased to $4.030 billion from $3.681 billion a year ago, led by positive organic base fee growth and the impact of market beta on average AUM.

Technology services revenue decreased to $403 million from $407 million the prior year, primarily due to the impact of several large client renewals of eFront “on-premises” licenses.

BlackRock stated that the net inflow stood at $221 billion in the quarter, resulting in a 5% organic base fee growth. Adjusted operating income rose 26% Y/Y to $2.13 billion, with the margin expanding to 45.8% from 42.3% a year ago.

Adjusted EPS increased 5% Y/Y to $11.46, beating the consensus of $10.38.

Total AUM stood at $11.5 trillion, up $2.4 trillion year-over-year, driven by net inflows of $456 billion and positive market movements.

Related: BlackRock Gears Up For Q3 Print; Here Are The Recent Forecast Changes From Wall Street’s Most Accurate Analysts

BlackRock repurchased shares worth $375 million in the quarter. This month, the company closed the acquisition of Global Infrastructure Partners (GIP), adding $116 billion in client assets under management (AUM) and $70 billion in fee-paying AUM.

Laurence D. Fink, Chairman and CEO, said, “Through coordinated investments and initiatives, we are evolving our private markets capabilities to best serve our clients. We’re already seeing the power of BlackRock and GIP together as we drive access to the enormous investment potential of infrastructure, especially to support AI innovation.”

“Our relentless focus on clients, growth mindset, and willingness to evolve has generated a compounded annual total return of over 20% for our shareholders since our IPO 25 years ago, well in excess of broader markets.”

Investors can gain exposure to the stock via Fidelity Disruptive Finance ETF FDFF and Capitol Series Trust The Nightview Fund NITE NITE.

Price Action: BLK shares are up 1.46% at $969.50 premarket at the last check Friday.

Photo by rafapress on Shutterstock

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