BlackRock Inc (BLK, Financial) released its earnings report for the third quarter of 2023 on October 13, 2023. The company reported a diluted EPS of $10.66, or $10.91 as adjusted. The company's strong performance was primarily driven by organic growth and the impact of market movements over the past twelve months on average AUM and higher technology services revenue.
Financial Performance
BlackRock Inc (BLK, Financial) reported $3 billion of quarterly total net inflows, reflecting $49 billion of net outflows from lower-fee institutional index equity strategies, including $19 billion from a single international client. The company's AUM increased by $1.1 trillion year-over-year, including $307 billion of net inflows, positive across ETFs, active, and cash management. The company's revenue increased by 5% year-over-year, and its operating income increased by 7% year-over-year. The company's diluted EPS increased by 15% year-over-year (14% as adjusted), reflecting a lower effective tax rate, partially offset by lower nonoperating income in the current quarter.
CEO Commentary
At BlackRock we are more connected with our clients than ever before, and I'm proud that clients have entrusted us with $307 billion of net inflows over the last twelve months, contributing to a $1.1 trillion increase in AUM. The long-term trend of clients consolidating more of their portfolios with BlackRock is only accelerating, and underlying business momentum remains strong. We remain intensely focused on staying in front of our clients, positioning for a resurgence in allocation activity as rates stabilize, and laying the foundation for future growth. We see transformative opportunities ahead for our clients, and look forward to delivering differentiated growth for our investors and all of our stakeholders." - Laurence D. Fink, Chairman and CEO
Financial Tables
BlackRock Inc (BLK, Financial)'s financial tables reveal a 14% increase in AUM year-over-year, with a 5% increase in revenue and a 7% increase in operating income. The company's diluted EPS increased by 15% year-over-year. The company also reported $375 million of share repurchases in the current quarter.
Analysis
BlackRock Inc (BLK, Financial)'s Q3 2023 earnings report shows a strong performance, with significant increases in revenue, operating income, and diluted EPS. The company's successful quarter was driven by organic growth and the impact of market movements over the past twelve months on average AUM and higher technology services revenue. The company's focus on staying connected with its clients and positioning for a resurgence in allocation activity as rates stabilize indicates a strong outlook for future growth.
