BlackRock, Inc. reported first quarter earnings per share of $3.16 beating the estimates of coverage analysts by $0.12. Assets under management grew by 5% from the previous quarter, to $3.684 Trillion. Revenue was in line with estimates, down 1% from a year earlier. BlackRock saw strong inflows in the areas of iShares – Exchange Traded Products, multi-asset class and alternatives. As asset classes gain momentum BlackRock remains well positioned to take advantage of asset inflows.
During the quarterly conference call, BlackRock noted that investors recognize the large amount of uncertainty in the investment environment that lies ahead. Upcoming elections in the U.S. and France as well as sovereign debt issues in Europe are just a few examples. As these tensions ease investors will move back into long-term investments with renewed confidence. During the first quarter BlackRock began a large marketing campaign with the goal of building the brand and the sediment that investors should look at investing on a longer time line.
Our expectations are that BlackRock will continue to build innovative financial products and create asset inflows. With a strong brand image in place we are confident BlackRock has all of the necessary mechanisms in place to have a strong second quarter.