Blackrock stronger-than-expected second quarter earnings Friday on the strength of $100 billion in client inflows amid the peak of market volatility during the coronavirus pandemic.
BlackRock said profits for the three months ending in June were pegged at $7.85 per share, up 22.5% from the same period last year and well ahead of the Street consensus forecast of $6.97 per share. Group revenues, BlackRock said, jumped 3.7% to $3.65 billion while assets under management rose 7% to $7.32 trillion.
“Clients are turning to BlackRock more than ever before as they face increasing uncertainty about the future, and we are bringing together the entirety of our differentiated platform to help them," said CEO Larry Fink. "Clients are relying on BlackRock for our unique insights, guidance and comprehensive investment solutions. This is leading to deeper partnerships, and we’re seeing clients entrust BlackRock with a greater share of their assets."
“BlackRock’s globally integrated asset management and technology platform generated $100 billion of total net inflows in the second quarter, representing 10% annualized organic base fee growth," he added. "iShares fixed income ETFs and BlackRock’s active equity strategies both saw record inflows, and leadership in cash solutions drove strength in flows as clients sought liquidity. Momentum also continued in sustainable strategies and illiquid alternatives, where we are investing for future growth."
Jim Cramer discussed his thoughts on Blackrock in the video above.
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