) third-quarter 2013 adjusted earnings came in at $3.88 per
share, in line with the Zacks Consensus Estimate. Further, this
was up 12% from $3.47 earned in the year-ago quarter.
AMERIPRISE FINL (AMP): Free Stock Analysis
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Results on a year-over-year basis benefited from rise in
revenues, partly offset by higher operating expenses. Further,
significant growth in assets under management (AUM) was a
After considering certain non-recurring items, net income
attributable to BlackRock came in at $730 million or $4.21 per
share, up from $642 million or $3.65 per share in the year-ago
Quarter in Detail
Total revenue was $2.47 billion, up 7% from the prior-year
quarter. The increase was mainly attributable to improvement in
markets, higher long-term net inflows and strength in BlackRock
Solutions. However, total revenue lagged the Zacks Consensus
Estimate of $2.49 billion.
Total expenses came in at $1.51 billion, up 4% on a
year-over-year basis. The increase was mainly due to rise in
employee compensation and benefits, direct fund expenses as well
as general and administration expenses, partly offset by decrease
in distribution and servicing costs.
Non-operating expense, net of non-controlling interests, was
recorded at $17 million, compared with non-operating income of
$43 million in the prior-year quarter.
BlackRock's operating income, on a GAAP basis, was $966 million,
increasing 10% from the year-ago quarter.
AUM totaled $4.10 trillion as of Sep 30, 2013, up 12% from the
year-ago period. The company witnessed total long-term inflows of
BlackRock repurchased about $250 million shares in the reported
BlackRock's sound capital deployment and acquisition activities
are expected to benefit the company in the long run. Moreover,
its initiatives to improve market share in the ETF business is
commendable. However, increased costs and high dependence on
fee-based revenues remain causes of concern.
BlackRock currently carries a Zacks Rank #3 (Hold).
Among other investment management firms,
Ameriprise Financial, Inc.
Waddell & Reed Financial, Inc.
) are scheduled to announce results on Oct 29, while
) will do so on Oct 31.