BlackRock is the largest asset management company in the world. It has experienced tremendous growth in the last decade or two. Back in 2005, the company had just over $300 billion in assets under management. Towards the beginning of 2021, the assets under management had ballooned to $8.67 trillion. This spectacular growth means that BlackRock today is among the most influential asset management companies in the world and has a global presence. It operates with offices in 30 countries and serves clients in 100 countries. BlackRock is also a significant player in the passive investing space. It is considered one of the Big 3 index fund companies and State Street and Vanguard. Passive investing and index investing are snowballing and are considered one of the structural trends affecting the asset management industry. Investors looking for asset management company stocks price should think about such trends.
BlackRock Announces Q12021 Earnings Results
On 15th April 2021, BlackRock released its first-quarter 2021 earnings numbers. Revenue increased 19% from $3.7 billion in Q12020 to $4.4 billion. Net income doubled on a year-on-year basis from $627 million to $1.27 billion. Earnings per share on a diluted basis rose from $5.15 to $7.77. The assets under management for the quarter also were up 39% as compared to the corresponding figure from Q12020. BlackRock also integrated sustainability and ESG into its portfolio management process and further grew its passive investing business. The Americas continued to be the largest geographical market for BlackRock while Europe, Middle East, and Africa was the second-largest segment. Asia-Pacific came in at number 3. Asset management stock market investing could be profitable if investors can find strong franchises.
BlackRock has managed to maintain a healthy gross margin of over 50% for the past few years. As a result, revenues had grown from around $9 billion in 2011 to over $16 billion in 2020. Earnings per share have also risen from about $12 in 2011 to $31 in 2020.