BlackRock Inc. (BLK.US) reported strong fourth quarter 2024 results Wednesday, with shares climbing as much as 2.7% in premarket trading as adjusted earnings surpassed analyst estimates. The world's largest asset manager demonstrated robust growth across its platforms, particularly in ETFs and private markets, though assets under management slightly missed expectations. The implied earnings surprise was positive with EPS beating estimates by 4.1%.
BlackRock delivered exceptional Q4 performance with notable strength in ETF flows and private market expansion, while its technology services segment showed continued momentum. The company benefited from increased client engagement and significant growth in alternative investments.
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BlackRock Q4 2024 results:
- Revenue: $5.68 billion vs $5.59 billion expected (+23% YoY)
- Adjusted EPS: $11.93 vs $11.46 expected ($9.66 YoY)
- Assets under management: $11.55 trillion vs $11.66 trillion expected (+15% YoY)
- Net inflows: $281.42 billion vs $198.41 billion expected (+194% YoY)
- Base fees and securities lending revenue: $4.42 billion vs $4.38 billion expected
- Technology services revenue: $428 million vs $417.5 million expected
- Adjusted operating margin: 45.5% vs 44.8% expected
Segment Performance:
- Long-term inflows: $200.67 billion (vs $159.93 billion expected)
- Equity net inflows: $126.57 billion (vs $73.47 billion expected)
- Fixed Income net inflows: $23.78 billion
- Institutional net inflows: $53.38 billion
- Retail net inflows: $4.65 billion
- Investment advisory performance fees: $451 million (vs $369.5 million expected)
Strategic Developments and 2025 Outlook:
- Completed $12.5 billion acquisition of Global Infrastructure Partners
- Pending closures of HPS Investment Partners ($12 billion) and Preqin Ltd. ($3.1 billion) acquisitions
- Bitcoin ETF launch showing strong growth with over $50 billion in assets
- Annual ETF business attracted $390 billion in total flows for 2024
- Record total annual inflows of $641 billion across all products
CEO Larry Fink expressed strong confidence in the firm's trajectory, stating "BlackRock enters 2025 with more growth and upside potential than ever. This is just the beginning." The company's strategic expansion into private markets through recent acquisitions positions it to compete with industry leaders like Blackstone, KKR, and Apollo Global Management.
The company announced several leadership changes, including Joe DeVico becoming head of the Americas client business and the establishment of a new global partners office to oversee relationships with major investors, following the departure of Mark Wiedman, a 20-year veteran of the firm.
The stock gains 2.7% in premarket trading to $989. Source: xStation
