Core Viewpoint - BlackRock is expected to report improved fourth-quarter and 2025 results on January 15, with year-over-year growth in revenues and earnings anticipated [1][9]. Group 1: Earnings and AUM Performance - BlackRock's third-quarter 2025 earnings exceeded the Zacks Consensus Estimate, benefiting from increased revenues and a record high in assets under management (AUM) of $13.46 trillion, driven by net inflows [1][2]. - The Zacks Consensus Estimate for total fourth-quarter AUM is projected at $13.99 trillion, reflecting a year-over-year increase of 21.1%, while the company's own estimate is $14.06 trillion [4]. - The consensus estimate for fourth-quarter earnings is $12.41 per share, indicating a 4% increase from the previous year, while the estimate for 2025 earnings is $47.37, suggesting an 8.6% year-over-year growth [12]. Group 2: Revenue Components - BlackRock is expected to see growth in investment advisory, administration fees, and securities-lending revenues, with the consensus estimate for total revenues at $5.30 billion, representing a 19.9% year-over-year rise [5]. - The consensus estimate for investment advisory performance fees is $478 million, indicating a 6% year-over-year increase, while distribution fees are estimated at $372 million, reflecting a 15.5% rise [6]. - Technology services revenues are projected at $529 million, implying a 23.6% year-over-year increase, and advisory and other revenues are estimated at $65 million, indicating a 10.2% rise [7]. Group 3: Expenses and Restructuring - BlackRock's total expenses are expected to rise to $4.40 billion in the fourth quarter, suggesting a year-over-year increase of 22.1, driven by restructuring initiatives and inorganic expansion efforts [8][10]. - The company anticipates a low-teen percentage increase in core general and administrative expenses for 2025, primarily due to the onboarding of Global Infrastructure Partners, Preqin, and HPS [10]. Group 4: Market Position and Future Outlook - BlackRock maintains a strong position in the ETF market, with continued investments in U.S. iShare core ETFs, contributing to consistent AUM growth [3]. - The approval and listing of spot Bitcoin and ether ETFs, along with acquisitions, are expected to further enhance AUM growth [4].

Core Insights - BlackRock (BLK) is expected to report improved third-quarter 2025 results on October 14, with revenues and earnings anticipated to rise year over year [1][8] - The company has a strong earnings surprise history, surpassing the Zacks Consensus Estimate in the last four quarters with an average surprise of 9.65% [2] AUM Growth - BlackRock remains a leading player in the ETF market, with consistent AUM growth supported by diversified offerings and strong revenue mix [3] - The approval of spot Bitcoin and ether ETFs, along with acquisitions of ElmTree and HPS Investment Partners, are expected to further boost AUM [4] - The Zacks Consensus Estimate for total AUM in Q3 is $13.08 trillion, reflecting a 13.9% year-over-year increase, while the internal estimate is $12.59 trillion [4] Revenue Expectations - Revenue growth is anticipated in investment advisory, administration fees, and securities-lending revenues, with a consensus estimate of $4.92 billion, indicating a 22.1% year-over-year rise [5] - The consensus estimate for investment advisory performance fees is $359 million, showing a decline of 7.5%, while distribution fees are expected to rise by 7.4% to $347 million [6] - Technology services revenues are projected to reach $497 million, reflecting a 23.3% year-over-year increase [6] - Advisory and other revenues are estimated at $58 million, indicating a 9.4% rise [7] Expense Overview - Total expenses are expected to increase to $3.66 billion, representing a 14.8% year-over-year rise due to restructuring initiatives and inorganic expansion efforts [9] Recent Developments - The acquisition of HPS Investment Partners on July 1 is expected to enhance BlackRock's private credit capabilities and grow fee-based revenues [10] - The acquisition of ElmTree Funds on September 2 aligns with BlackRock's long-term goal to raise $400 billion for private markets by 2030 [11] Earnings Predictions - The Earnings ESP for BlackRock is -0.51%, indicating a low chance of beating the Zacks Consensus Estimate for earnings this quarter [12] - The Zacks Consensus Estimate for Q3 earnings is $11.53 per share, revised 1.8% lower over the past week, with a projected sales estimate of $6.27 billion, reflecting a 20.7% year-over-year rise [13]

Core Viewpoint - BlackRock is expected to report improved second-quarter 2025 results, with revenues and earnings anticipated to show year-over-year growth [1][11]. Group 1: Performance and Estimates - BlackRock's first-quarter 2025 earnings exceeded the Zacks Consensus Estimate, driven by revenue growth and a record high AUM of $11.58 trillion, influenced by net inflows and favorable forex impacts [1][2]. - The Zacks Consensus Estimate for total AUM in Q2 is $11.68 trillion, reflecting a 9.7% year-over-year increase, while the company's own estimate is $11.66 trillion [5]. - The consensus estimate for second-quarter earnings is $10.77 per share, indicating a 4% increase from the previous year, with sales expected to rise by 12% to $5.38 billion [11]. Group 2: Revenue Components - BlackRock is projected to see growth in investment advisory, administration fees, and securities-lending revenues, with a consensus estimate of $4.36 billion, representing a 12.6% year-over-year rise [6]. - The estimate for investment advisory performance fees is $156.6 million, showing a decline of 4.5%, while distribution fees are expected to rise by 1.7% to $323.3 million [7]. - Technology services revenues are estimated at $493.7 million, indicating a 25% year-over-year increase [7]. Group 3: Expenses and Strategic Initiatives - Total expenses for BlackRock are estimated at $3.33 billion, suggesting a year-over-year rise of 10.7, driven by restructuring initiatives and expansion efforts [9]. - The company continues to enhance its AUM through diversified offerings and strong revenue mix, with the listing of bitcoin ETPs contributing positively [4][5]. Group 4: Market Position and Outlook - BlackRock maintains a strong position in the ETF market, with over 1,400 ETFs globally, and the approval of spot Bitcoin and ether ETFs likely contributing to AUM growth [3]. - The company has a positive Earnings ESP of +1.28% and a Zacks Rank of 2 (Buy), indicating a high likelihood of beating the consensus estimate for earnings [10].

Core Viewpoint - BlackRock Inc. has strategically expanded its operations in the private markets by acquiring Preqin for nearly $3.2 billion, enhancing its Aladdin technology business and positioning itself for growth in this sector [1]. Group 1: Acquisitions and Expansion - BlackRock has been actively pursuing growth in the private markets, including a $12 billion acquisition of HPS Investment Partners to deepen its involvement in private credit [2]. - The company also acquired Global Infrastructure Partners to strengthen its infrastructure offerings and has recently agreed to acquire Panama Ports Company, expanding its global infrastructure presence with a deal valued at $22.8 billion [3]. - These acquisitions are part of BlackRock's strategy to increase its global reach, boost assets under management (AUM), and diversify revenue streams [4]. Group 2: Assets Under Management (AUM) and Financial Performance - BlackRock's AUM has experienced a five-year compound annual growth rate (CAGR) of 9.2%, reaching a record $11.55 trillion as of December 31, 2024, with net inflows of $641 billion [6]. - The company has seen significant growth in its exchange-traded funds (ETFs), with net inflows of $390 billion, and is expected to continue this momentum through its iShares unit and active equity business [6]. - BlackRock's GAAP revenues have also shown a CAGR of 7% over the past five years, indicating strong financial performance [8]. Group 3: Product Diversification and Market Position - BlackRock is focusing on product diversification to enhance its revenue mix and reduce concentration risk, which is expected to broaden its client base [8]. - The company plans to launch a Bitcoin-linked ETF in Europe and has partnered with Partners Group to improve retail investors' access to alternative investments [7]. - The combination of recent acquisitions with its alternative asset management platform is anticipated to drive revenue growth in the upcoming quarters [9]. Group 4: Financial Health and Capital Distributions - As of December 31, 2024, BlackRock reported borrowings of $12.3 billion and cash equivalents of $12.8 billion, indicating a strong balance sheet and liquidity position [12]. - The company has increased its quarterly dividend by 2% to $5.21 per share, with a history of five dividend increases in the last five years and an annualized growth rate of 8.8% [13]. - BlackRock also has a share repurchase plan in place, aiming to buy back $1.5 billion worth of shares this year [16]. Group 5: Analyst Sentiments and Valuation - Analysts have a positive outlook on BlackRock's expansion efforts, with earnings estimates for 2025 and 2026 reflecting expected growth of 8.7% and 14%, respectively [17][19]. - The stock has outperformed peers over the past year, with a price-to-book ratio of 3.15X, which is lower than the industry average of 3.65X, suggesting it is trading at a discount [20][22]. - BlackRock's return on equity (ROE) stands at 15.63%, outperforming the industry average of 12.58%, indicating effective management and profitability [25].