BlackRock (NYSE: BLK) the world's largest asset manager, reported first-quarter earnings and revenue on Thursday that surpassed expectations as assets under management inched higher to above $6.3 trillion.
For the year, BlackRock shares are up 2.3%, outperforming the S&P 500, which is down slightly. The shares vaulted $12.78, or 2.4%, mid-morning Thursday to $538.59
BlackRock reported earnings: $6.70 per share versus $6.39 forecast by Thomson Reuters. Revenue came in at $3.583 billion vs. $3.40 billion expected. Assets under management: $6.316 trillion vs. $6.43 trillion forecast by StreetAccount. Long-term net inflows: $54.63 billion vs. $68.60 billion expected.
The company said its first-quarter earnings rose 28% year over year, "driven in part by [a] lower tax rate." BlackRock's effective tax rate for the quarter was 19.6% last quarter, down from 23.8% in the first quarter of 2017.
BlackRock also said its operating margin expanded to 38.4% in the quarter from 37% last year.
BlackRock Chief Executive Larry Fink said in a statement the company’s institutional clients reacted dramatically, for instance by stocking away cash in the bond market, selling investments to fund investments, share buybacks or acquisitions.
The asset manager was in the news last month after it said it was time to take action on firearms, noting it may use its voting power to influence how some civilian gun makers are run.
On April 5, BlackRock-run iShares said it would offer a new line of products that excluded firearms makers and sellers.
