BlackRock (BLK) reported robust results for the third quarter. The investment management company reported adjusted earnings of $11.46 per share, up by 5% year-over-year. This exceeded consensus estimates of $10.36 per share.
The company’s revenues increased by 15% year-over-year to $5.2 billion, surpassing Street estimates of $5.03 billion. The rise in revenues was driven by a 5% increase in organic base fees and higher performance fees. Base fees are the fees earned by investment management firms on net asset inflows. Meanwhile, performance fees are the fees charged by BlackRock on the performance of the fund.
BLK Sees a Surge in AUM
Alongside impressive top and bottom line results, BLK saw its assets under management (AUM) reach a new high of $11.5 trillion in the third quarter. In fact, over the last 12 months, BLK’s AUM has grown by $2.4 trillion. During the third quarter, BLK’s clients entrusted the company with net inflows of $221 billion.
BlackRock Is on an Acquisition Spree
In conjunction with its Q3 results, BlackRock also disclosed that it has completed its $12.5 billion acquisition of Global Infrastructure Partners (GIP) on October 1. This deal added an impressive $116 billion in private market assets to its portfolio. With this acquisition, BlackRock is positioning itself as a one-stop destination for global clients seeking to invest across both public and private markets.
In addition to its GIP acquisition, BlackRock is also in the process of closing a £2.55 billion ($3.3 billion) deal to acquire Preqin, a private-market data firm.
The company is on an acquisition spree and could be exploring the potential acquisition of HPS Investment Partners, a private credit firm, according to a Bloomberg report earlier this week.
Is BLK a Good Stock to Buy?
Analysts remain bullish about BLK stock, with a Strong Buy consensus based on 15 Buy ratings and two Hold ratings. Over the past year, BLK has surged by more than 50%, and the average BLK price target of $997.41 implies an upside potential of 4.4% from Thursday’s closing price. Some of these analyst ratings are likely to change following BLK’s results today.
