Blackrock reported results for 2Q24, which overall were both better in all key figures than the previous year and solidified positive trends continuing into early 2024.
FINANCIAL RESULTS FOR 2Q24:
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Open account Try demo Download mobile app Download mobile app- AUM: $10.65 trillion (+13% y/y)
- Average AUM: $10.46 trillion (+14% y/y)
- Revenue: $4.81 billion (+8% y/y)
- Total net inflows: $81.57 billion (+1.7% y/y)
- Adjusted operating profit: $1.88 billion (+12% y/y)
- Operating profit margin: 44.1% (vs. 42.5% a year earlier)
- Adjusted net profit: $1.55 billion (+11% y/y)
- Adjusted diluted EPS: $10.36 (+12% y/y)
The strong performance of the stock market and the ongoing bull market in the US supported the fund's performance, which also benefited strongly from increased movement in the investment area. The company reported a record $10.65 trillion in AUM, $1.22 trillion more than a year earlier and $0.18 trillion more than in the previous quarter. The fund recorded the strongest net inflows in the ETF segment, with total inflows of $83.14 billion. Equity market-related ETFs were the strongest performers, accounting for more than half of this amount ($44.45 billion in net inflows). In second place were fixed income ETFs, which recorded $34.49 billion in inflows. The change in AUM in this segment was influenced by the weaker condition of the bond market, which continued to lose compared to Q1, and movements in the foreign exchange market. The total impact of currency fluctuations in all segments was -$35.445 billion). Meanwhile, AUM increased by $123 billion due to market changes.
The record AUM was also reflected in the company's revenues, which rose to $4.805 billion (+8% y/y). Revenue was supported primarily by growth in base fee income. Organic growth in base fees was 9% year-on-year. Instead, the fund recorded a decline in fees related to lending financial instruments, driven by lower spreads.
The company's total operating expenses increased at a slower pace (by 5.5% y/y), thanks to the low growth in labor-related costs, which account for about 50% of the company's total operating expenses. As a result, the company maintained the positive trend in operating margin growth, resulting in a record margin since 2Q22 of 44.1%.
Adj. Operating income (in mln $) and adj. Operating margin. Source: Blackrock
Excluding 3Q23 adjusted EPS reached a record high of $10.36 in the quarter. In addition to the surge in 3Q23, the fund maintains stable q/q net profit growth at an average of 5.25%.
Adj. Net income (in mln $) and adj. EPS. Source: Blackrock
The company's strong results cemented the short-term uptrend that had been in place since the beginning of the month. The company also broke through the limit of the sideways trend it had been in since the beginning of April, located at around $816. Now, an important resistance level will be around $844, set by the local peaks of February and March 2024. In addition, this resistance is reinforced by the slope of the upward trend line, where the company's stock price was in the December-March 2024 period. If the stock can break out of it, bulls can count on the continuation of the positive trend and a stronger signal for the company to enter the upward trend. Source: xStation
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