BlackRock reported double-digit drops in revenue and adjusted net income during the first quarter, however, its earnings still topped the Street’s expectations, sending the company’s shares higher.
For the three months ended March 31, 2023, the bank posted a 10% decline in revenue. Revenue fell from $4.7 billion in the comparable quarter last year to $4.2 billion, in line with the Street’s expectation.
BlackRock said the decline was driven by the impact of significantly lower markets and dollar appreciation on average assets under management and lower performance fees.
Its adjusted net income fell by 18% year-over-year from $1.5 billion to $1.2 billion, but its adjusted earnings per share of $7.93 beat the consensus analyst expectation of about $7.67 per share.
The bank saw inflows of $110 billion during the first quarter, compared to $86 billion in 1Q 2022, and its assets under management grew by $500 billion to $9.1 trillion, more than what analysts had been expecting.
“BlackRock is helping clients execute on opportunities arising during this period of transition, driving $110 billion of total net inflows and positive annualized organic base fee growth in the first quarter,” commented BlackRock CEO Laurence D Fink.
BlackRock shares had added 1.5% at US$681 in pre-market trading on Friday.
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