BlackRock's Q1 Earnings Soar on AUM Growth, Offset by Higher Expenses

BlackRock's Q1 Earnings to be Impacted by Higher Expenses

New York, NY - BlackRock, the world's largest asset manager, is set to report its first-quarter earnings on April 15, with investors keenly watching the company's performance. While the rise in assets under management (AUM) is expected to boost BlackRock's top line, higher expenses are likely to hurt its bottom line.

According to Zacks Investment Research, BlackRock's AUM has been growing steadily, driven by the company's strong brand and the increasing demand for exchange-traded funds (ETFs) and index funds. This growth is expected to translate into higher revenue for the company.

However, higher expenses are likely to offset some of the benefits from the AUM growth. The company's expenses have been rising due to increased investment in technology and hiring of new employees to support its growth.

Analysts expect BlackRock's Q1 earnings to decline by around 10% year-over-year, mainly due to higher expenses. The company's adjusted earnings per share (EPS) are expected to come in at $6.23, down from $6.92 in the same period last year.

Despite the expected decline in earnings, BlackRock's Q1 revenue is expected to rise by around 15% year-over-year, driven by the growth in AUM. The company's AUM has been growing steadily, with the company's total AUM reaching $8.5 trillion at the end of 2020.

BlackRock's Q1 earnings report will be closely watched by investors, who will be looking for any guidance on the company's future growth prospects. The company's ability to continue growing its AUM and its ability to manage its expenses will be key to its future success.