Investment management giant BlackRock (NYSE:
) reported first quarter 2013 results early Tuesday morning that
beat analyst estimates. BlackRock beat both on the top and bottom
lines as assets under management at the firm grew 7 percent
year-over-year to a new record level.
For the first quarter of 2013, BlackRock reported adjusted
earnings per share of $3.65 compared to analyst estimates of
$3.58. Revenue was also strong in the quarter at $2.45 billion
vs. $2.43 expected by analysts.
BlackRock noted that assets under management grew to a record
$3.936 trillion in the first quarter of 2013, representing 7
percent growth from the same period a year ago. To put the figure
into perspective, that is about 25 percent of the GDP of the U.S.
Along with this growth in AUM, BlackRock announced that it saw
$39.4 billion in net long-term inflows.
Also in the quarter, BlackRock returned more capital to
shareholders reflecting the company's commitment sound capital
management. In the first quarter, the company increased its
dividend by 12 percent to $1.68 per share and also repurchased
$250 million in stock.
"Our strong first quarter financial results, with revenue up
9% and EPS up 16% year-over-year, once again demonstrate the
strength of our diversified business model," commented Laurence
D. Fink, Chairman and CEO of BlackRock. "Our $39.4 billion in
long-dated net new business for the quarter is indicative of
positive momentum across all client channels and was driven by
the strategic themes we continue to focus on:
, retirement, income, multi-asset class products, and
"Aging populations are living longer worldwide at the same
time that global monetary policies have reduced interest rates to
historic lows. Now, long-dated fixed income instruments
traditionally used to fund retirement obligations carry
asymmetric risk for investors looking to match retirement assets
and liabilities. This is having a significant impact on where
we're seeing asset flows as investors seek other sources of
yield, including from equities, where we witnessed a record $34
billion in net new flows."
"iShares maintained its leadership position in the global ETF
market, capturing $26 billion in net new business, as we
continued to see adoption of ETFs across both institutional and
retail investors globally. We signed a critical new strategic
alliance with Fidelity Investments to deliver Fidelity's more
than 10 million clients increased access to iShares products,
tools and support, and create a powerhouse ETF offering for the
self-directed investor in the U.S. market. iShares has
increasingly become a leading indicator of investor sentiment
and, during the quarter, investors turned to iShares as a way to
quickly and efficiently increase their exposure to equity
"Our institutional clients also displayed an expanded appetite
for risk and holistic portfolio solutions, generating strong net
inflows in multi-asset products, including our LifePath®
target-date funds where we now manage $62 billion, a 38% increase
year-over-year. BlackRock Solutions posted another strong quarter
and continues to expand globally."
"Our Aladdin assignments generated year-over-year revenue
growth of 11% driven by several successful implementations and a
growing global client base. Clients are increasingly using
Aladdin across multiple asset classes as they consolidate
investment systems. Including two substantial new client wins in
April, we have added seven Aladdin assignments in 2013 and we are
implementing programs totaling close to $1.3 trillion in new
"During the quarter, we continued our efforts to reshape the
organization and invest in developing top-tier talent. We have
made a number of internal moves to create opportunities for high
performing employees and to add talent in key areas to enhance
the experience for our clients. Since our acquisition of Barclays
Global Investors, the Company has added more than 1,500 employees
globally and expects incremental net additions by the end of this
"Our first quarter results give us confidence that we have
positioned BlackRock to continue to deliver for our clients and
shareholders across all market environments," said Mr. Fink.
BlackRock shares traded modestly higher in the pre-market
following the news. Shares gained 0.45 percent to $255.00 per
share as of 6:49 am eastern.
(c) 2013 Benzinga.com. Benzinga does not provide investment
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