Earlier today, BlackRock, which belongs to the Zacks Financial – Investment Management industry announced a historic achievement, with assets under management (AUM) reaching approximately $10.5 trillion in the first quarter. This remarkable milestone coincided with a 36% surge in profit, driven by the resurgence of global equity markets, which in turn bolstered investment advisory and administration fees.
According to data compiled by Thomson Reuters, analysts had anticipated the company to achieve earnings of $9.32 per share, on average. In comparison to last year, the company’s revenue for the quarter increased by 11.6%, rising to $4.73 billion from $4.24 billion.
Nevertheless, total net inflows declined to $57 billion from $110 billion in the previous year. Inflows remain subdued as clients remain cautious, awaiting the commencement of interest rate cuts before re-entering the market for riskier assets.
Analysts anticipate a resurgence in asset management industry flows following the implementation of interest rate cuts. This would stimulate the movement of cash reserves currently on the sidelines into riskier assets.
Shares of the world’s largest asset manager were up 2.6% in premarket trading.
Is BlackRock stock a Buy, Sell or Hold? BlackRock stock has received a consensus rating of strong buy according to Zacks. The average rating score is and is based on 44 buy ratings, 11 hold ratings, and 0 sell ratings.
