BlackRock Inc.'s (BLK) strong investment performance and robust new business helped push profits 34% higher for the world's largest asset manager in the first-quarter 2011 earnings period, the company reported Thursday.
Net income totaled $568 million, 34% higher year over year, but 14% lower compared with the previous quarter, when BlackRock's profits skyrocketed 107% higher. Revenues were 14% higher, at $2.28 billion versus $1.99 billion in the year-earlier period, and 8% lower than the $2.49 billion of revenues earned in fourth-quarter 2010.
Net income was down $89 million compared to Q4 2010 primarily due to the seasonal nature of performance fees, according to BlackRock's Q1 2011 earnings release.
Earnings per share were $2.89, 33% higher than last year's EPS of $2.17 and 14% lower than Q4 2010's EPS of $3.35, which beat analysts' expectations for EPS of $2.75.
"I am very pleased with our year-over-year growth in revenues and adjusted EPS, driven by strong investment performance, robust new business in long-term products, increased demand for BlackRock Solutions and continued expense discipline," said Chairman and CEO Laurence D. Fink in a statement. "Our new business results, including $82.4 billion in the pipeline, are a direct result of the differentiated value we are delivering for our clients."
Assets under management (AUM) totaled $3.65 trillion at March 31, up $87.5 billion, or 2%, during the quarter. Growth in AUM was driven by a $100 billion improvement in market and investment performance and $34.7 billion of net new business in long-term products, including equity, fixed income, multi-asset class and alternative investments. These reflected net inflows in all asset classes, client regions and distribution channels.
