BlackRock reported better-than-expected earnings and saw its shares jump higher as the company announced plans to expand into fast-growing markets, including alternative investments.
BlackRock reported better-than-expected earnings Wednesday, sending shares of the asset management giant higher as it embarks on a pivotal year of expansion into fast-growing markets. Revenue of $5.68 billion in the three months ended December 31 exceeded expectations of $5.49 billion, according to LSEG. Adjusted earnings per share (EPS) of $11.93 topped the consensus estimate of $11.19, LSEG data showed. Assets under management (AUM) totaled $11.
55 trillion at the end of the quarter, a bit shy of the $11.65 trillion estimate, according to FactSet. BlackRock's success is driven by a consistent inflow of client money. The company registered a record $281 billion in net inflows in the October-to-December period, surpassing its previous all-time high of $211 billion in the third quarter. While assets under management of $11.55 trillion as of December 31 was a slight miss versus expectations, it still represents an increase compared to a then-record $11.48 trillion at the end of September. CEO Larry Fink outlined a compelling vision of an even stronger BlackRock in the future as the company transforms itself into a bigger player in alternative investment strategies.Furthermore, BlackRock is aggressively pushing into private markets and has closed several significant acquisitions. This includes the $12.5 billion acquisition of Global Infrastructure Partners on the first day of the fourth quarter, which owns or has stakes in a wide range of infrastructure assets, including London Gatwick Airport, the Port of Melbourne, and data centers. BlackRock also has two pending acquisitions to deepen its alternative assets presence: a $3.2 billion all-cash deal for private markets data provider Preqin, and a $12 billion all-stock transaction for HPS Investment Partners, a firm specializing in private credit. Fink believes these deals will help BlackRock achieve 'higher and more durable organic growth, greater resilience through market cycles and multiple expansion' for its stock.
BLACKROCK EARNINGS STOCK PRICE INVESTMENTS ALTERNATIVE INVESTMENTS PRIVATE MARKETS INFRASTRUCTURE
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