BlackRock beats earnings expectation – Q4 21

BlackRock Inc (NASDAQ: BLK) released its FY21 fourth-quarter earnings call on Thursday before the market opened.  The investment company reported adjusted earnings per share of $10.42 with a revenue of $5.106 billion.

Financial Highlights

  • $540 billion of full year total net inflows, reflects 6% organic asset growth and 11% organic base fee growth, led by record flows in ETFs and active strategies
  • $212 billion of quarterly total net inflows positive across all client types, investment styles and regions
  • 20% increase in full year revenue includes record organic growth, record performance fees and continued growth in technology services revenue
  • 31% increase in full year GAAP operating income and 20% increase in diluted EPS reflect the impact of a charitable contribution in 2020, which was excluded from as adjusted results
  • 19% growth in full year as adjusted operating income includes the impact of higher fund launch costs and amortization of intangible assets in the current year
  • 16% increase in full year as adjusted diluted EPS also reflects a higher effective tax rate, partially offset by higher non operating income in the current year
  • 18% increase in quarterly cash dividend to $4.88 per share approved by Board of Directors

Analysts Estimate

EPS – $10.15

Revenue – $5.17 billion

Earnings History

On October 13, 2021, BlackRock released its third-quarter earnings report. In the third quarter, the company generated $5.1 billion in revenue, a 16 percent increase over the previous year.

While the company reported an 11 percent increase in operating income to $1.9 billion, this reflected the impact of approximately $96 million in fund launch costs, primarily associated with the successful launch of a $2 billion closed-end fund in late September.

Earnings per share of $10.95 were up 19% year on year, owing to significantly higher non-operating income in the current quarter.

Non-operating results for the quarter included $298 million in net investment income, primarily driven by non-cash gains on our strategic minority investments in iCapital and Scalable Capital and mark-to-market gains in their private equity co-investment portfolio.

BlackRock’s as-adjusted tax rate was around 24 percent for the third quarter.

Company Profile

BlackRock, Inc. is a publicly-traded investment management company. The firm’s primary clients include corporate, public, union, and industry pension plans, insurance companies, third-party mutual funds, endowments, public institutions, governments, foundations, charities, sovereign wealth funds, corporations, official institutions, and banks. In addition, it provides global risk management and consulting services.

The firm compares the performance of its portfolios to the S&P 500, Russell 1000, Barclays, MSCI, Citigroup, and Merrill Lynch indices. BlackRock, Inc. was founded in 1988 and is headquartered in New York City, with offices in Boston, Massachusetts, London, England, Gurgaon, India, Hong Kong, Greenwich, Connecticut, Princeton, New Jersey, Edinburgh, England, Sydney, Australia, Taipei, Taiwan, Singapore, Sao Paulo, Brazil, Philadelphia, Pennsylvania, Washington, District of Columbia, Toronto, Canada, Wilmington, Delaware, and San Francisco, California.

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