2023-04-14 08:08:15 ET
BlackRock ( NYSE: BLK ) stock rose 1.6% before the bell on Friday after the world's largest asset manager posted Q1 earnings topping estimates , driven by higher non-operating income, while bond ETFs fueled strong net inflows.
Q1 adj. EPS was $7.93 vs. $9.52 in Q1 2022, but topped consensus of $7.69. Revenue fell 9.8% Y/Y to $4.24B, in line with expectations, driven by the impact of significantly lower markets and dollar appreciation on average assets under management and lower performance fees.
AUM grew 5.8% sequentially to $9.09T, with average AUM totaling $8.9T. Long-term net inflows reached $103B, driven by continued momentum in bond ETFs and significant outsourcing mandates. However, the number slowed from $146B in Q4.
Total net inflows reached $110B, reflecting net inflows to its diversified cash management platform. "BlackRock ( BLK ) is helping clients execute on opportunities arising during this period of transition, driving $110B of total net inflows and positive annualized organic base fee growth," said CEO Laurence Fink. "BLK led the industry with $34B of bond ETF net inflows and accounted for over 60% of total fixed income ETF trading volume."
Fink believes weaker confidence in regional banks sector will accelerate capital markets growth, and BlackRock ( BLK ) will be a central player.
"Long-term inflows equaled +$103B vs our estimate of +$85B, with the primary positive delta coming from multi asset," said Jefferies analyst Daniel Fannon. "All active segments had positive net flows ex equities. Organic base fee growth in the period was positive."
Earlier, BlackRock was hired by FDIC to sell SVB and Signature securities portfolios.
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BlackRock posts Q1 earnings beat, bond ETFs fuel strong net inflows