BlackRock Starts Strong In 2024 With Q1 AUM & Fees Surge, Stock Gains

Zinger Key Points
  • BlackRock's Q1 revenue jumps 11% YoY to $4.728 billion, exceeding consensus by $52 million.
  • Adjusted EPS climbs 24% YoY to $9.81, surpassing consensus by $0.49, driven by strong AUM growth and improved margins.

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

Revenue growth of 11% Y/Y to $4.728 billion, beating the consensus of $4.676 billion. 

Investment advisory, administration fees, and securities lending revenues increased to $3.78 billion from $3.50 billion a year ago, led by market beta on average AUM, positive organic base fee growth, and the impact of one additional day.

Technology services revenue increased to $377 million from $340 million the prior year, reflecting continued demand for Aladdin technology offerings.

BLK stated that the net inflow stood at $57 billion in the quarter. Adjusted operating income rose 17% Y/Y to $1.78 billion, with the margin expanding to 42.2% from 40.4% a year ago.

Adjusted EPS increased 24% Y/Y to $9.81, beating the consensus of $9.32.

Total AUM stood at $10.5 trillion as of March 31, 2023, compared to $9.1 trillion last year quarter.

BLK’s Board of Directors approved a quarterly cash dividend per share of $5.10 and repurchased shares worth $375 million in the quarter. 

Laurence D. Fink, Chairman and CEO said, “With markets full of complexity and opportunity, clients are increasingly coming to BlackRock for insights and advice. We see significant growth potential in infrastructure, technology, retirement and whole portfolio solutions, with a strong pipeline that has some of the best breadth that we’ve ever seen.” 

ReadBlackRock Bolsters Wealth Management Arsenal With SpiderRock Advisors Acquisition, Expanding SMA Solutions

BlackRock issued debt of $3 billion to fund portion of cash consideration for the acquisition of Global Infrastructure Partners.

In March, the company, alongside Singaporean sovereign wealth fund GIC Pte, stated that it is reportedly considering selling a U.K. gas pipeline network valued at around $2 billion.

Investors can gain exposure to the stock via Fidelity Disruptive Finance ETF FDFF and Madison ETFs Trust Madison Dividend Value ETF DIVL.

Also ReadBlackRock’s Tokenized Fund Gets USDC Cash-Out Option Via Circle Integration

Price Action: BLK shares are trading higher by 2.68% at $807.00 premarket on the last check Friday.

Photo via Shutterstock

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