Investment giant BlackRock, Inc. BLK shares are trading higher after the company reported first quarter FY24 results.
Revenue growth 11% y/y to $4.728 billion, beating consensus of $4.676 billion.
Revenue from investment advisory, administrative fees and securities lending increased to $3.78 billion from $3.50 billion a year ago, driven by market beta on average AUM, growth positive organic base commissions and the impact of one more day.
Revenue from technology services increased to $377 million from $340 million a year earlier, reflecting continued demand for Aladdin’s technology offerings.
BLK said net inflows totaled $57 billion in the quarter. Adjusted operating profit increased 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 consensus of $9.32.
Total assets under management were $10.5 trillion as of March 31, 2023, up from $9.1 trillion last quarter.
BLK’s board of directors approved a quarterly cash dividend per share of $5.10 and repurchased $375 million worth of stock in the quarter.
Laurence D. Fink, President and CEO, said: “With markets full of complexity and opportunity, clients are increasingly turning to BlackRock for insights and advice. We see significant growth potential in infrastructure, technology, retirement and solutions across the entire portfolio, with a strong pipeline that is one of the best sizes we have ever seen.”
Light: BlackRock Strengthens Wealth Management Arsenal with Acquisition of SpiderRock Advisors and Expansion of SMA Solutions
BlackRock issued $3 billion in debt to finance part of the cash consideration for the acquisition of Global Infrastructure Partners.
In March, the company, along with Singapore sovereign wealth fund GIC Pte, said it was considering selling a gas pipeline network in the UK worth about $2 billion.
Investors can gain exposure to the stock via Fidelity Disruptive Finance ETF FDFF AND Madison Trust Madison ETF Dividend Value ETF DIV.
Read also: BlackRock tokenized fund gains USDC withdrawal option via Circle integration
Price Action: BLK shares were trading 2.68% higher at $807.00 pre-market at last check on Friday.
Photo via Shutterstock