This article first appeared on GuruFocus.
BlackRock (NYSE:BLK) reported third-quarter adjusted EPS of $15.93, up 38%, on revenue of $7.75 billion, up 19%. Both topped the analysts’ consensus of $14.32 a share and $7.42 billion. GAAP EPS was $10.57, up 25%, held back by a $564 million noncash charge on contingent payments for the GIP and HPS acquisitions. BlackRock shares rose 5.04% in premarket.
Net inflows of $205 billion lifted assets under management to $15.5 trillion. iShares ETFs drew $135 billion and active strategies $66 billion, offset partly by $27 billion of outflows from institutional index mandates. Annualized organic base fee growth reached 11%. Technology services and subscription revenue, which includes Aladdin, rose 14% to $588 million, and the adjusted operating margin widened to 47.8% from 44.6%.
Chairman and CEO Larry Fink said BlackRock is entering its seasonally strongest fourth quarter with accelerating momentum. The firm bought back $550 million of stock in the quarter.
