BlackRock, Inc. (BLK), a prominent investment giant, is trading higher after a stellar third-quarter earnings report. The company delivered impressive revenue growth of 15% year-over-year, reaching $5.197 billion, surpassing analysts’ consensus estimate of $5.007 billion. This growth was fueled by strong performance in key areas like investment advisory, administration fees, and securities lending revenues, which increased to $4.030 billion from $3.681 billion in the previous year. The increase was primarily driven by organic base fee growth and the positive impact of market beta on average assets under management (AUM).
BlackRock reported a substantial net inflow of $221 billion during the quarter, contributing to a 5% organic base fee growth. This robust inflow reflects investor confidence in BlackRock’s investment strategies. Adjusted operating income surged 26% year-over-year to $2.13 billion, with the margin expanding to 45.8% from 42.3% in the prior year. This strong performance resulted in adjusted earnings per share (EPS) climbing 5% year-over-year to $11.46, exceeding the consensus estimate of $10.38.
BlackRock’s total AUM reached a record high of $11.5 trillion, marking an impressive $2.4 trillion increase year-over-year. This growth was driven by both the substantial net inflows and favorable market conditions. During the quarter, BlackRock repurchased shares worth $375 million. Earlier this month, the company finalized the acquisition of Global Infrastructure Partners (GIP), adding $116 billion to its client AUM and $70 billion to its fee-paying AUM.
Laurence D. Fink, Chairman and CEO of BlackRock, highlighted the strategic importance of the GIP acquisition, stating, “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.” He further emphasized BlackRock’s commitment to its clients and its strong growth trajectory, stating, “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 seeking exposure to BlackRock can consider ETFs like Fidelity Disruptive Finance ETF (FDFF) and Capitol Series Trust The Nightview Fund (NITE). BLK shares were up 1.46% at $969.50 in premarket trading on Friday.
