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Last Update: 17-Oct-12 09:26 ET
Blackrock shares little changed following beat on earnings
BlackRock (BLK $189.97 +0.00) reported third quarter earnings of $3.47 per share, $0.18 better than the Capital IQ consensus of $3.29, while revenues rose 4.3% year/year to $2.32 billion versus the $2.26 billion consensus. Diluted EPS totaled $3.47 and included operating income of $3.42 per diluted share and net non-operating income of $0.05 per diluted share. Adjusted operating margin of 40.7% in third quarter 2012 rose 60 bps from third quarter 2011 and 150 bps from second quarter 2012. The company Successfully launched the largest closed-end fund in BlackRock history raising approximately $1.6 bln in assets. Co continued strong repurchase activity buying 960,100 shares in the quarter with a total of 8.2 million shares year to date.
"We've built a broad and diverse platform at BlackRock focused on delivering strong investment performance and the solutions our clients need regardless of market environment. In the third quarter, we delivered record earnings per share up 23% from the prior year and margins over 40%...We achieved these results through robust new business generation across each of our channels with particular strength in key growth areas on which we've focused, including Retail and iShares and our DC business, strong non-operating results and due to the benefits of share repurchases."
Assets under management totaled $3.673 trillion at September 30, 2012, up 3% from June 30, 2012 and up 10% from a year ago.
BlackRock had long-term net inflows of $31.3 billion in third quarter 2012 excluding the effect of a single, low-fee, institutional index fixed income outflow of $74.2 bln, which BlackRock declined to re-bid at extremely low fees. iShares net inflows of $25.2 billion reflected positive net inflows across all asset classes, including net inflows of $20.5 bln into equity funds, demonstrating strong renewed investor demand for U.S. equity offerings. Fixed income and alternatives products included net inflows of $3.2 bln and $1.4 bln, respectively. Investment advisory, administration fees and securities lending revenue of $2.0 bln in third quarter 2012 increased $75 mln from $1.9 bln in third quarter 2011 due to higher fees from all products except for active equity and alternative products and an increase in securities lending revenue. U.S. retail and high net worth inflows of $3.5 bln showed diversification across asset classes and continued strength in income-oriented products, such as a high yield bond fund with net inflows of $1.4 bln. Retail AUM of $398.0 bln reflected net inflows of $4.6 bln and market and investment performance gains of $19.3 bln.
"We've built a broad and diverse platform at BlackRock focused on delivering strong investment performance and the solutions our clients need regardless of market environment. In the third quarter, we delivered record earnings per share up 23% from the prior year and margins over 40%...We achieved these results through robust new business generation across each of our channels with particular strength in key growth areas on which we've focused, including Retail and iShares and our DC business, strong non-operating results and due to the benefits of share repurchases."
Assets under management totaled $3.673 trillion at September 30, 2012, up 3% from June 30, 2012 and up 10% from a year ago.
BlackRock had long-term net inflows of $31.3 billion in third quarter 2012 excluding the effect of a single, low-fee, institutional index fixed income outflow of $74.2 bln, which BlackRock declined to re-bid at extremely low fees. iShares net inflows of $25.2 billion reflected positive net inflows across all asset classes, including net inflows of $20.5 bln into equity funds, demonstrating strong renewed investor demand for U.S. equity offerings. Fixed income and alternatives products included net inflows of $3.2 bln and $1.4 bln, respectively. Investment advisory, administration fees and securities lending revenue of $2.0 bln in third quarter 2012 increased $75 mln from $1.9 bln in third quarter 2011 due to higher fees from all products except for active equity and alternative products and an increase in securities lending revenue. U.S. retail and high net worth inflows of $3.5 bln showed diversification across asset classes and continued strength in income-oriented products, such as a high yield bond fund with net inflows of $1.4 bln. Retail AUM of $398.0 bln reflected net inflows of $4.6 bln and market and investment performance gains of $19.3 bln.
