BlackRock Reports Strong Quarter as ETF Revenue Advances

BlackRock shares are higher after the world's largest asset manager reported stronger-than-expected fourth-quarter results.
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BlackRock (BLK) - Get Report reported fourth-quarter results that topped analyst estimates and the firm's total assets it manages climbed 25% to $7.43 trillion from $5.98 trillion a year earlier.

The world's largest asset manager reported fourth-quarter earnings of $8.29 a share, up 43% from $5.98 a year earlier. The latest adjusted earnings were $8.34 a share. Analysts surveyed by FactSet were expecting the company to report $7.69 a share. 

Revenue reached $3.98 billion, up 16% from $3.43 billion. The FactSet estimate for the latest period: $3.84 billion.

BlackRock’s asset management and technology platform "generated a record $429 billion of total net inflows in 2019,” Chief Executive Larry Fink said in a statement. 

The firm’s iShares-branded ETFs took in $75.2 billion of new money, up from the $41.5 billion it brought in the third quarter. 

For the year, the company reported EPS rose 7% to $28..43 a share. The latest adjusted number was $28.48 a share.

“Clients are increasingly looking to BlackRock as a strategic partner to deliver not just products, but broader thought leadership on macro and geopolitical issues and whole-portfolio solutions powered by technology,” Fink said.

BlackRock recently said it would take steps "to place sustainability at the center of our investment approach, including making sustainability integral to portfolio construction and risk management and exiting investments that present a high sustainability-related risk."

“The recently announced acceleration of our sustainability efforts is yet another example of BlackRock’s commitment to helping clients build more resilient portfolios and navigate investment opportunities and risks,” Fink said.

Shares of BlackRock edged up 0.3% on Wednesday to $520.