U.S. Markets open in 4 mins
  • S&P Futures

    4,509.25
    +0.75 (+0.02%)
     
  • Dow Futures

    34,103.00
    +101.00 (+0.30%)
     
  • Nasdaq Futures

    15,829.00
    -40.75 (-0.26%)
     
  • Russell 2000 Futures

    2,153.60
    +7.30 (+0.34%)
     
  • Crude Oil

    63.82
    -1.75 (-2.67%)
     
  • Gold

    1,778.70
    -5.60 (-0.31%)
     
  • Silver

    22.41
    +0.07 (+0.32%)
     
  • EUR/USD

    1.1342
    +0.0019 (+0.1701%)
     
  • 10-Yr Bond

    1.4160
    -0.0180 (-1.26%)
     
  • Vix

    30.00
    +2.81 (+10.33%)
     
  • GBP/USD

    1.3310
    +0.0032 (+0.2422%)
     
  • USD/JPY

    112.8460
    +0.0660 (+0.0585%)
     
  • BTC-USD

    56,693.62
    -1,645.12 (-2.82%)
     
  • CMC Crypto 200

    1,445.06
    -24.02 (-1.63%)
     
  • FTSE 100

    7,088.90
    -79.78 (-1.11%)
     
  • Nikkei 225

    27,753.37
    -182.25 (-0.65%)
     

Post Earnings Coverage as BlackRock's Adjusted EPS Soared 24%; Asset Under Management Jumped 14%

Upcoming AWS Coverage on Northern Trust Post-Earnings Results

LONDON, UK / ACCESSWIRE / April 25, 2017 / Active Wall St. announces its post-earnings coverage on BlackRock, Inc. (NYSE: BLK). The Company reported its first quarter fiscal 2017 results on April 19, 2017. The world's biggest asset manager exceeded earnings expectations. Register with us now for your free membership at:

http://www.activewallst.com/register/

One of BlackRock's competitors within the Asset Management space, Northern Trust Corp. (NASDAQ: NTRS), reported its Q1 earnings conference call live on Tuesday, April 25, 2017. AWS will be initiating a research report on Northern Trust in the coming days.

Today, AWS is promoting its earnings coverage on BLK; touching on NTRS. Get our free coverage by signing up to:

http://www.activewallst.com/register/

Earnings Reviewed

For the quarter ended March 31, 2017, BlackRock's revenue increased 8% to $2.82 billion compared to $2.62 billion. The Company's revenue numbers lagged behind analysts' consensus of $2.86 billion. BlackRock's cash management asset under management (AUM) decreased 4% to $388.9 billion. The Company's assets grew 14% on a y-o-y basis to $5.42 trillion, fees for managing those assets and lending out the securities grew 12% compared to the year ago same period. BlackRock's reported quarter results reflected $80 billion of long-term net inflows, representing an annualized organic asset growth rate of 7% and an annualized organic base fee growth rate of 5%.

During Q1 2017, BlackRock's base fees rose 7% on a y-o-y basis, primarily driven by the positive impact of market appreciation and organic growth on the Company's AUM. On a constant currency basis, the Company's base fees grew approximately 9% year-over-year. BlackRock' performance fees of $70 million increased $36 million compared to Q1 2016, reflecting better hedge fund and long-only performance, but declined $59 million sequentially, primarily due to seasonally higher fees from funds with a performance measurement period that ended in the fourth quarter. BlackRock's Aladdin revenue of $158 million was up 12% on a y-o-y basis, driven by new clients and several sizable implementations going live on the Aladdin platform over the last year.

BlackRock's net income rose to $862 million, or $5.23 a share in Q1 2017, compared to net income of $657 million, or $3.92 a share, in Q1 2016. Excluding non-recurring items, the Company's adjusted earnings per share totaled $5.25 which outperformed Wall Street's estimates of $4.89 per share.

Segment Results

BlackRock's long-term net inflows were positive across all major regions, with net inflows of $55.8 billion, $18.1 billion and $6.4 billion from clients in the Americas, EMEA and Asia/Pacific, respectively. At March 31, 2017, BlackRock managed 63% of its long-term AUM for investors in the Americas and 37% for clients in EMEA and Asia/Pacific.

BlackRock's Retail long-term net inflows of $4.6 billion reflected net inflows of $5.0 billion internationally, partially offset by net outflows of $0.4 billion from the United States. The Company's fixed income net inflows were $4.8 billion driven by inflows into unconstrained and emerging market categories. Equity net inflows of $1.8 billion reflected inflows into index mutual funds. Multi-asset net outflows of $1.7 billion were largely due to outflows from world allocation strategies.

The Company's iShares ETFs long-term net inflows were $64.5 billion for Q1 2017, bolstered by equity net inflows of $44.6 billion. BlackRock's fixed income net inflows of $20.3 billion reflected inflows into investment grade corporate, emerging markets debt and treasury bond funds.

BlackRock's institutional active long-term net outflows of $1.0 billion reflected equity and fixed income net outflows of $4.7 billion and $1.3 billion, respectively, partially offset by inflows into multi-asset and alternatives. Multi-asset net inflows of $3.8 billion were driven by ongoing demand for the LifePath® target-date series. Alternatives net inflows of $1.2 billion were led by inflows into infrastructure offerings.

Institutional index long-term net inflows of $12.2 billion comprised of fixed income and equity net inflows of $9.5 billion and $2.4 billion, respectively.

Stock Performance

On Monday, April 24, 2017, BlackRock's share price finished yesterday's trading session at $386.65, rising 2.27%. A total volume of 590.91 thousand shares exchanged hands, which was higher than the 3 months average volume of 518.13 thousand shares. The stock has advanced 12.11% and 8.45% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have gained 2.25%. The stock is trading at a PE ratio of 19.00 and has a dividend yield of 2.59%.

Active Wall Street:

Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

AWS has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst, for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@activewallst.com

Phone number: 1-858-257-3144

Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active Wall Street