BlackRock's Q1 Equity Fee Rates Were Light Across All Product Types, Analyst Cautions On Fee Rate Dynamics
Portfolio Pulse from Nabaparna Bhattacharya
BlackRock, Inc. (NYSE:BLK) reported Q1 revenue growth of 11% year over year to $4.728 billion, beating consensus but saw shares trading lower due to concerns over fee rate dynamics. Management fees missed consensus by 1%, with equity fee rates and Alts fee rate declining. iShares drove $55 billion of flows, and despite mixed results, future growth is anticipated with significant mandates in wealth, institutional, and Aladdin sectors.
April 12, 2024 | 5:27 pm
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BlackRock's Q1 earnings beat estimates with revenue growth, but concerns over fee rate dynamics led to a share price decline. iShares contributed significantly to flows, indicating mixed but potentially positive future performance.
Despite beating revenue estimates, BlackRock's share price declined due to concerns over fee rate dynamics, particularly in equity and Alts fees. The significant contribution of iShares to flows suggests a strong product performance, yet the overall mixed results and focus on softer core revenue trends may impact investor sentiment in the short term.
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