BlackRock (NYSE:BLK) shares jumped in the early session today after the world’s largest investment manager reported better-than-anticipated first-quarter numbers.
BlackRock’s Impressive Performance
Revenue rose by 11.4% year-over-year to $4.73 billion, outpacing expectations by $80 million. Similarly, EPS of $9.81 exceeded estimates by $0.43. The company’s assets under management (AUM) rose by $1.4 trillion year-over-year to a record $10.5 trillion. Its top-line gains for the quarter were driven by higher average AUM, gains in organic base fees, and an uptick in performance fees and technology services revenue.
This uptick helped the company increase its operating income for the quarter by 18% to $1.69 billion. Laurence Fink, the Chairman and CEO of BlackRock, noted that the company sees substantial growth potential in infrastructure, technology, retirement, and comprehensive portfolio solutions.
Importantly, BlackRock clocked long-term net inflows of $76 billion in Q1. This robust performance comes amid major activist investor action in the stock. Activist investor Bluebell Capital Partners is seeking to bar Larry Fink from acting as both CEO and Chairman at BlackRock. Bluebell is also seeking a board shakeup and increased oversight at the company. However, BlackRock maintains that Fink serving in both roles is an effective strategy, owing to his over three decades of experience and knowledge of the company’s business.
What Is BlackRock’s Target Price?
Today’s price gains come on top of a nearly 25% jump in BlackRock’s share price over the past six months. Overall, the Street has a Strong Buy consensus rating on the company, alongside an average BLK price target of $920.08. However, analysts’ views on the stock could see a revision following today’s earnings report.
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