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BlackRock Reports 28% Growth In Q1 EPS; Revenue Up 16%

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BlackRock, Inc. (BLK) reported that its first-quarter earnings per common share, as adjusted, increased to $6.70 from $5.23, prior year. Adjusted operating income increased to $1.38 billion from $1.15 billion. Net income attributable to BlackRock, as adjusted, was $1.09 billion compared to $862 million, prior year. First-quarter earnings per share on GAAP basis was $6.68 compared to $5.21. The company noted that a 28% growth in EPS year-over-year is driven in part by lower tax rate.

First-quarter revenue improved 16% year-over-year to $3.58 billion from $3.09 billion, previous year. The company said the growth in revenue is driven by base fees and technology and risk management revenue. Investment advisory, administration fees and securities lending revenue was $2.95 billion compared to $2.52 billion, prior year.

"Paced by a strong January, long-term net inflows of $55 billion, representing 5% annualized organic base fee growth, were positive across active and index strategies. Momentum continued in technology and risk management, with 19% year-over-year revenue growth, further highlighting the strength and diversity of our global platform," Laurence Fink, CEO of BlackRock, stated.

The company reported long-term net inflows of $57.3 billion and $3.2 billion from clients in the Americas and Asia-Pacific regions, respectively, which were partially offset by net outflows of $5.9 billion from clients in EMEA. At March 31, 2018, BlackRock managed 63% of its long-term AUM for clients in the Americas, 29% for clients in EMEA and 8% for clients in Asia-Pacific.

Retail long-term net inflows were $16.7 billion, and reflected net inflows of $8.7 billion in the United States and $8.0 billion internationally. iShares ETFs long-term net inflows of $34.6 billion reflected strength in iShares Core ETFs. Institutional active long-term net outflows were $7.1 billion, while Institutional index long-term net inflows were $10.4 billion. Cash management AUM increased 1% from the prior quarter to $454.8 billion.

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