The numbers BlackRock reported for the fourth quarter of 2023 surpassed analysts’ expectations as the company also purchased Global Infrastructure Partners.
Asset manager BlackRock Inc (NYSE: BLK) reported its fourth quarter 2023 results, which beat Wall Street expectations. According to the report, BlackRock earned a profit of $0.15, or $9.66 per share, adjusted for restructuring and amortization costs. Additionally, BlackRock Inc’s total revenue for the fourth quarter of 2023 was $4.63 billion, meeting Wall Street expectations. In addition to its Q4 2023 numbers, BlackRock also announced the $12.5 billion acquisition of private equity firm Global Infrastructure Partners.
BlackRock’s fourth-quarter 2023 earnings topped expectations, as analysts surveyed by Zacks Investment Research estimated earnings of $8.84 per share. The company’s assets under management (AUM) topped $10 trillion in the quarter, ahead of Wall Street estimates of $9.8 trillion. Additionally, inflows reached $96 billion in the fourth quarter of 2023 alone. For the year, the company reported revenue of $17.86 billion and profit of $5.5 billion, or $36.51 per share.
BlackRock shares rose slightly yesterday, closing at $792.61. However, it fell 0.9% to $785.5 in pre-market trading. BLK has risen nearly 25% over the past three months, but its stock price has fallen 2.36% this year.
BlackRock Announces 2023 Fourth Quarter Earnings and Announces Acquisition of Global Infrastructure Partner
BlackRock’s acquisition of Global Infrastructure Partners is part of the asset manager’s expansion into private markets with a focus on infrastructure. The transaction, expected to close in the second quarter of this year, involves $12 billion in BlackRock’s common stock and $3 billion in cash.
In a statement, BlackRock Chairman and CEO Larry Fink said:
“The combination of BlackRock Infrastructure and GIP will make us the second largest private markets infrastructure manager with over $150 billion in total AUM, providing high coupons, inflation protection, and long-term investments to our clients, especially those saving for retirement. no see. necessary.”
BlackRock Inc is one of 11 applicants to receive approval from the U.S. Securities and Exchange Commission (SEC) for a spot Bitcoin exchange-traded fund (ETF). On the first day of trading, the ETF’s total volume exceeded $4 billion, with BlackRock accounting for $924 million, compared to Grayscale’s $1.9 billion.
Estimates of ETF trading volume are quite optimistic. The total could exceed $10 billion this year, according to Bernstein analysts. Interestingly, Standard Chartered analysts are much more optimistic. Analysts believe the ETF could raise up to $100 billion by the end of this year. Additionally, analysts believe this could push the price of Bitcoin up to $100,000.
Still, other analysts sounded warnings. According to them, the excitement surrounding the Bitcoin ETF may be too hasty, only as a result of its approval after a long period of application. For others, there is no real need for a Bitcoin investment. Bitcoin is simply a “speculative vehicle” and not an asset or currency, according to Robert Arnott, chairman and founder of consulting and asset management firm Research Affiliates. He added that there is nothing wrong with speculative vehicles as long as investors know what they are doing.
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