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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:


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:


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%.

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SOURCE: Active Wall Street