Why BlackRock’s Diversified Product Line Matters
BlackRock (BLK), the world’s largest asset manager, has seen rising and sustained income levels over the past few years, mainly due to diversified and innovative product offerings like iShares. The asset management giant is expected to post EPS (earnings per share) of $5.31 in 2Q17—a growth of 11.09% on a YoY (year-over-year) basis.
For fiscal 2017, BLK is expected to post EPS of $21.7, which represents a growth of 12.4% and implies a PE (price-to-earning) ratio of 17.3x. In 1Q17, BlackRock beat estimates of $4.89 and posted EPS of $5.23.
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BlackRock’s revenue climbed to ~$2.8 billion, but it missed estimates mainly due to lower advisory and distribution fees. On March 31, 2017, the company was managing total assets of ~$5.4 trillion, as compared to ~$4.7 trillion one year previously and ~$5.1 billion in the previous quarter. Notably, State Street (STT) and J.P. Morgan (JPM) have also demonstrated improved performances on rising broad markets (SPX-INDEX) (SPY).
An ETF giant
On March 31, 2017, BlackRock had AUM (assets under management) of $5.4 trillion—the highest among global asset managers—raised from governments, corporates, institutions, sovereign wealth funds, and retail clientele.
In this series, we’ll analyze BlackRock’s expected performance, iShares, strategic initiatives, flows, dividends, outlook, competition, and valuations.