BlackRock (BLK) First Quarter Earnings Beat on Strong Inflows, Goldman Said 'Mixed' Results More than Priced In

(Updated - April 13, 2022 7:49 AM EDT)

BlackRock (NYSE: BLK) shares rose fractionally higher in pre-open trading Wednesday following earnings that beat the bottom line consensus but missed slightly on the top line as inflows held strong despite the volatile market that hurt performance fees.

The fund manager reported that adjusted EPS rose 18% to $9.52, topping the consensus of $8.84. Revenue rose 7% to $4.699 billion, just below the consensus of $4.73 billion. Revenue was driven by strong organic and technology services growth, offset by lower performance fees.

The company generated $114 billion of long-term net inflows in the first quarter, while $86 billion of quarterly total net inflows. ETFs delivered $56 billion of net inflows.

BlackRock repurchased $500 million in stock in the quarter and raised its dividend by 18% to $4.88 per share.

Commenting on the results, Goldman Sachs analyst Alexander Blostein viewed the quarterly dynamics as "mixed" with management fees missing, AUM coming in 1% better, and lower fee rates likely an offset. While consensus estimates will likely be going lower, he views the risk as priced in with shares down 22% since the start of the year. The analyst maintained a Buy rating and $850 price target on BlackRock.

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