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Earnings Review and Free Research Report: BlackRock's Q3 Results Outshined Forecasts Driven by Performance Fees and iShares

LONDON, UK / ACCESSWIRE / October 16, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on BlackRock, Inc. (NYSE: BLK), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=BLK, following the Company's posting of its financial results on October 11, 2017, for the third quarter fiscal 2017 (Q3 FY17). The New York-based Company's revenues and adjusted diluted EPS grew 14% and 15% y-o-y, respectively; outperforming market consensus forecasts. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at: http://protraderdaily.com/register/.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on BLK. With the links below you can directly download the report of your stock of interest free of charge at: http://protraderdaily.com/optin/?symbol=BLK.

Earnings Reviewed

During Q3 FY17, BlackRock's total revenue was $3.23 billion compared to $2.84 billion in Q3 FY16. Total revenues for the reported quarter topped market consensus estimate of $3.11 billion. The Company's year-over-year revenue growth was attributed to rise in base fees, performance fees, and technology and risk management revenue. Meanwhile, the Company's revenue used for operating margin measurement for Q3 FY17 rose to $3.11 billion from $2.72 billion in the prior year's same quarter.

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The investment Company reported GAAP net income attributable to BlackRock of $947 million, or $5.78 per diluted share, in Q3 FY17 compared to $875 million, or $5.26 per diluted share, in Q3 FY16. Furthermore, adjusted net income attributable to BlackRock increased to $969 million, or $5.92 per diluted share, during the reported quarter from $854 million, or $5.14 per diluted share, in Q3 FY16. Wall Street had expected the Company to report adjusted net income available to BlackRock of $5.59 per diluted share.

Earnings Metrics

During the reported quarter, the Company reported total expenses of $1.84 billion, compared to $1.63 billion in Q3 FY16. The Company reported an increase in employee compensation and benefits by $119 million y-o-y in Q3 FY17, primarily reflecting higher incentive compensation driven by higher performance fees and operating income, and higher headcount. The general and administration (G&A) expense also grew $51 million y-o-y in Q3 FY17, due to higher portfolio services, technology, and professional services as well as increased foreign exchange remeasurement expense and contingent consideration fair value adjustments. Meanwhile, the Company's adjusted operating income grew to $1.40 billion, or 45.0% of total revenues, in Q3 FY17 from $1.22 billion, or 44.8% of total revenues, in the year ago corresponding quarter.

BlackRock's had asset under management amounting to $5.98 trillion as on September 30, 2017, compared to $5.12 trillion at the end on Q3 FY16. The Company reported total net flows of $96.11 billion in Q3 FY17 compared to $69.81 billion in Q3 FY16. Furthermore, long-term net flows came in at $75.81 billion during Q3 FY17.

Business by Client Type

Retail - The long-term net inflows from Retail were $7.37 billion in Q3 FY17, which included net inflows of $3.67 billion from the United States and $3.70 billion internationally. The fixed income net inflows came in at $4.61 billion, led by net inflows into unconstrained, municipal, and emerging market debt categories. Equity net inflows which were at $1.73 billion, reflected inflows into index mutual funds. Furthermore, multi-asset net inflows of $1.04 billion largely constituted of Multi-Asset Income fund family, partially offset by outflows from world allocation strategies.

iShares ETF - In Q3 FY17, iShares ETFs long-term net inflows stood at $52.31 billion, primarily attributable to strength in iShares Core, precision exposure and financial instrument ETFs. The equity net inflows were $33.10 billion, whereas fixed income net inflows came in $17.53 billion Furthermore, Commodities iShares generated $1.51 billion of net inflows during the reported quarter.

Institutional Active - Institutional active long-term net inflows of $0.16 billion during Q3 FY17 were led by multi-asset net inflows of $3.48 billion and fixed income net inflows of $0.5 billion. However, there was equity net outflows of $3.30 billion in Q3 FY17 primarily because of fundamental and scientific active equities. Moreover, alternatives also reported net outflows of $0.52 billion, which consisted of $0.6 billion due to return of capital.

Institutional Index - BlackRock's Institutional index long-term net inflows were $15.98 billion in Q3 FY17, which included fixed income net inflows of $36.91 billion, driven by demand for liability-driven solutions. Meanwhile the long-term net inflows were partially offset by equity net outflows of $19.61 billion.

Share Repurchase

In Q3 FY17, the Company repurchased shares worth approximately $275 million.

Stock Performance

At the closing bell, on Friday, October 13, 2017, BlackRock's stock slipped 1.06%, ending the trading session at $475.49. A total volume of 639.78 thousand shares have exchanged hands, which was higher than the 3-month average volume of 510.95 thousand shares. The Company's stock price soared 11.98% in the last three months, 23.89% in the past six months, and 36.11% in the previous twelve months. Moreover, the stock surged 24.95% since the start of the year. The stock is trading at a PE ratio of 22.26 and has a dividend yield of 2.10%. The stock currently has a market cap of $77.36 billion.

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SOURCE: Pro-Trader Daily