BlackRock Shares Rise After Yet Another Earnings Beat

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BlackRock Shares Rise After Yet Another Earnings Beat
By BlackRock [Public domain], via Wikimedia Commons

BlackRock, Inc. (NYSE:BLK) shares jumped as much as 5% in premarket trading after the company released its latest quarterly earnings results. BlackRock has managed to beat expectations yet again, posting fourth quarter earnings per share of $4.86 and revenue of %$2.68 billion. Analysts had been expecting the firm to report earnings of $4.33 per share on revenue of $2.69 billion.

BlackRock continues strong trend

BlackRock has beaten analyst expectations for earnings for at least the last seven consecutive quarters. The firm reported full-year earnings of $16.87 per share and reported $40.5 billion in long-term net inflows during the fourth quarter. For all of 2013, BlackRock, Inc. (NYSE:BLK) reported $117.1 billion in long-term net inflows.

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The firm improved its operating margins to 40.8% during the fourth quarter and 37.9% for the full year. It also reported consistency in capital management after buying back $250 million worth of its shares during the quarter. For all of 2013, BlackRock bought back $1 billion in shares. The company’s board of directors also declared a quarterly cash dividend of $1.93 per share, which will be payable March 24 to shareholders of record on March 7.

BlackRock sees growth in all businesses

BlackRock, Inc. (NYSE:BLK) had $4.324 trillion in assets under management at the end of December. That’s a 14% year over year increase.

The firm also broke down its net flows according to client time. In retail, they saw $16.6 billion in long-term net inflows, including $9.4 billion in the U.S. In its iShares business, BlackRock had $19.1 billion in long-term net inflows, which includes both U.S. and European clients. It noted demand for exposure to European and Japanese equities, as well as global funds. In the firm’s institutional active business, it had $8 billion in long-term net inflows, including $12.1 billion of flows into multi-asset class products. They said this reflects demand for their “LifePath target-date suite.” BlackRock also reported long-term net outflows of $3.2 billion in its institutional index, which was driven by equity and multi-asset net outflows.

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