Here Are BlackRock’s Mind-Blowing Numbers

Money manager BlackRock (NYSE:BLK) isn’t slowing down, and rather exciting fourth-quarter numbers are evidence of that.

Rumors had been going around last year that BlackRock’s Chief Executive, Larry Fink, might try running to be the next U.S. Secretary of the Treasury, but he made it clear back in December that he was going to be sticking around at BlackRock, and the numbers coming out for the company’s fourth quarter make it clear why.

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BlackRock reported net income of $690 million, which equaled $3.96 per share on an adjusted basis. The profits were a quarterly record for BlackRock and also significantly exceeded the $3.73 a share that analysts had projected for the quarter. In what Fink called the company’s “strongest quarter ever,” net income far surpassed income of $135 million in the year-ago quarter.

It wasn’t just BlackRock’s profits that beat analysts expectations, though. While quarterly net income jumped 24.32 percent compared to the year-earlier quarter, revenue also rose 11.75 percent. This brought revenue up to $2.54 billion. For comparison, the average revenue estimate was only $2.49 billion…

Changes for the future

With a strong quarter under its belt, BlackRock looks to the future and a slew of new business. Demand from both retail and institutional investors has been growing for BlackRock, with its IShares business drawing in $35.7 billion in new customer money last quarter to remain the world’s largest exchange-traded funds business. The total amount of money BlackRock manages rose to $3.79 trillion, which is an 8 percent increase from the year-earlier quarter.

And what’s good for BlackRock is good for shareholders. The firm’s board recently announced that it would be increasing the quarterly dividend by 12 percent, to $1.68. Also, to increase the benefits seen from rising share values, the firm is looking to increase its share buyback program.

So, while some were worried that BlackRock was slowing down, with profit dropping a year-over-year average of 4.4 percent across the previous four quarters, BlackRock’s results evidence a strong rally that is likely to continue in the New Year.

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