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BlackRock’s First Quarter Performance Exceeds Profit Expectations Amid Growing Economic Concerns
Key Takeaways
BlackRock, the world’s largest asset manager, exceeded profit projections for the first quarter while narrowly missing revenue estimates. The firm has set a new milestone with assets under management reaching $11.58 trillion. According to CEO Larry Fink, ongoing “uncertainty and anxiety” regarding economic conditions and the stock market have been key themes in discussions with clients.
In its latest financial report, BlackRock (BLK) posted adjusted earnings per share of $11.30, significantly surpassing analyst predictions of $10.13. However, the company reported revenue of $5.28 billion, which fell slightly short of the estimates made by Visible Alpha.
As of the close of the first quarter, BlackRock achieved a record $11.58 trillion in assets under management, marking an 11% increase compared to the same period last year. This growth underscores the company’s ability to attract capital even in turbulent market conditions.
CEO Larry Fink addressed the current sentiment among clients, stating, “Uncertainty and anxiety about the future of markets and the economy are dominating client conversations.” He reflected on how similar situations in the past, including the financial crisis and the COVID-19 pandemic, have led to significant structural changes and opportunities for growth. “We always stayed connected with clients, and some of BlackRock’s biggest leaps in growth followed,” he added.
Fink also touched on the potential inflationary impacts of tariffs imposed during the Trump administration, highlighting that many CEOs he has communicated with believe the U.S. economy may already be in a recession.
Following the announcement, BlackRock’s stock saw a modest increase of less than 1% shortly after the market opened on Friday. However, shares are still down approximately 16% year-to-date.
UPDATE—This article has been updated with the latest share price information.
Source
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