BlackRock, Inc. (BLK) on Wednesday reported underwhelming financial results for the three months ended December 31, 2018, before the market opened for regular trade.
Net income slumped 60% to $927 million or $5.78 per diluted share, on a revenue slide of 9% to $3.43 billion.
Analysts had expected $6.35 per share earnings on revenue of $3.61 billion. Both top line and bottom line failed to beat the consensus.
Assets Under Management (AUM) for BlackRock slipped 5% in the quarter, while operating income slumped 16% to $1.25 billion.
“BlackRock generated total net inflows of $124 billion in 2018. This included $50 billion of fourth quarter net inflows and record quarters for iShares and illiquid alternative strategies. Technology services revenue grew 19% in 2018, driven by strong demand for Aladdin and our digital wealth technologies,” said BlackRock CEO Laurence D. Fink.
BlackRock announced that its board approved a 5% rise in the quarterly cash dividend to $3.30 per share, payable March 21, 2019, to shareholders of record at the close of business on March 6, 2019.
FALL IN REVENUES
BlackRock reported that its advisory, administration fees and securities lending revenue fell $118million in the fourth quarter from a year ago. This trend continued from the third quarter when it lost $104 million.
BlackRock has failed to capitalize on the positive organic growth and AUM acquired from its TCP and Citibanamex transactions. This looks like the impact of lower markets, pricing changes to select investment products and lower borrowing demand for securities lending in the current environment.
Securities lending revenue was just $129 million in the current quarter, vs. $150 million in the fourth quarter of 2017.
The Coca-Cola Company (NYSE: KO) reported first-quarter 2021 financial results before the regular market hours on Monday. The beverage manufacturer reported fourth-quarter revenue of $9 billion, up 5% year-over-year. The
The market rally gathered pace this week amid impressive quarterly results, led by the banking sector, and positive economic data. Leading stock indexes continued their winning streak, with S&P 500
Leading Wall Street banks recorded robust earnings in the early months of fiscal 2021 with the results benefiting from the release of credit loss reserves, in most cases. Taking advantage