BlackRock, Inc. (NYSE: BLK) stock rose 2.17% on January 15th, 2020 (Source: Google finance) and continued its bullish momentum on January 16th, 2020 rising over 0.2% (as of 9:54 am GMT-5; Source: Google finance).The company posted better than expected earnings to the fourth quarter of 2019 due to strong flows into its exchange-traded fund business that boosted overall assets under management to a record $7.43 trillion. For the fourth quarter, BlackRock’s cash management business drew net inflows of $29.80 billion, taking total assets for the business to $545.95 billion. On the back of a strong rally in global equity markets and strong inflows across business segments, the company was able to lure $128.84 billion in new money during the fourth quarter. Though, many of BlackRock’s clients were under-invested in equities and invested heavily in fixed-income securities. Further, BlackRock’s iShares-branded ETFs posted in $75.20 billion of new money, which is up from $41.50 billion in the prior quarter, taking the net inflow for the year 2019 to $183 billion. BlackRock’s institutional franchise has posted long-term net inflows of $136 billion in 2019, which represents 4% organic base fee growth. Global iShares has generated $183 billion of net inflows for the year, which represents an organic growth of 11%. BlackRock has generated $14 billion of illiquid alternative net inflows in 2019, which is up from $8 billion in 2018 and just $1 billion of net flows in 2017. The company’s fourth-quarter net income rose to $1.30 billion in the three months ended Dec. 31, from $927 million, a year earlier
Meanwhile, the company has closed the strategic acquisition of eFront, which in combination with Aladdin will offer the clients with an ability to seamlessly manage portfolios and risk across public and private asset classes on a single platform. The company had returned an aggregate of $3.8 billion to shareholders in 2019.
The company had repurchased approximately $1.7 billion worth of shares and an average share price of $414 per share during the year. The company expects to repurchase at least $1.2 billion of shares during 2020. The company intends to seek Board approval later this month for an increase to the first quarter 2020 dividend.
BLK in the fourth quarter of 2019 has reported the adjusted earnings per share of $8.34, beating the analysts’ estimates for the adjusted earnings per share of $7.69, according to IBES data from Refinitiv. The company had reported the adjusted revenue growth of 16 percent to $3.98 billion in the fourth quarter of 2019.