Investment Giant BlackRock's Strong Finish To 2023: Dividend Boost, Accretive Acquisition & More
Portfolio Pulse from Lekha Gupta
BlackRock Inc (NYSE:BLK) reported a 7% year-over-year increase in Q4 FY23 revenue, with a slight beat over consensus. The company saw growth in investment advisory, administration fees, and technology services revenue. Adjusted operating income and EPS also rose, with EPS beating expectations. BlackRock announced a dividend increase and share repurchases. The firm plans to acquire Global Infrastructure Partners, which is expected to be accretive to earnings and operating margin. Despite the positive report, BLK shares traded slightly lower in premarket.
January 12, 2024 | 12:41 pm
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POSITIVE IMPACT
BlackRock reported strong Q4 FY23 results with revenue and EPS growth, a dividend increase, and a significant acquisition of Global Infrastructure Partners. The acquisition is expected to enhance BlackRock's infrastructure AUM and be accretive to earnings.
The positive earnings report and the accretive acquisition of Global Infrastructure Partners are likely to be viewed favorably by investors, potentially leading to a short-term increase in BlackRock's stock price. The dividend increase also signals financial strength and commitment to shareholder returns, which can further support the stock price. However, the slight premarket dip indicates that the market may have already priced in some of the positive news.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100