BlackRock’s (BLK) fourth quarter operating earnings per share of $2.39 significantly outperformed the Zacks Consensus Estimate of $2.12, earnings of $2.10 in the sequential quarter and 66 cents in the prior-year quarter.

Results reflected robust operating income growth resulting from the Barclays Global Investors (BGI) acquisition in Dec 2009, along with continued positive business momentum through net asset growth and improvements in the external market environment. This was partially offset by net outflows and decrease in average assets.

BlackRock’s total revenue increased 45% sequentially and 35% year-over-year to $1.544 billion. This included $278 million of base fees associated with the $1.85 trillion of acquired BGI assets under management (AUM), revenue associated with $62.6 billion of net new business and net market appreciation and $125 million of combined firm performance fees.

The growth was attributable to increased revenues across the investment advisory, administration fees, securities lending, performance fees and BlackRock Solutions segments. Net new business in the reported quarter was $82.0 billion with strong flows across regions and client channels.

The BGI acquisition contributed $94 million to net income, which was more than offset by a $108 million after-tax expense associated with the BGI transaction and integration costs. Total operating net income was $379 million, as compared to $293 million in the sequential quarter and $90 million in the year-ago quarter.

During the reported quarter, total operating expenses was $1.6 billion, compared to $726 million in the year-ago quarter due to BGI transaction and integration costs, restructuring costs and increase in other compensation and operating expenses.

As of Dec 31, 2009, BlackRock’s AUM was $3.35 trillion as compared to $1.43 trillion on Sep 30, 2009, reflecting the inclusion of BGI and other acquisitions. Equity AUM ended the year at $1.54 trillion, up $100.3 billion from third quarter. Fixed income AUM increased $44.6 billion from third quarter to $1.06 trillion at year-end. Multi-asset class AUM was $141.7 billion at year-end, up $7.7 billion from the third quarter.

However, average assets declined approximately 5% relative to the third quarter. During the quarter, net outflows of $0.2 billion consisted net inflows of $9.0 billion from U.S. clients and net outflows of $9.2 billion from international investors.

For full-year 2009, total revenue decreased 7% year-over-year to $4.7 billion. Operating earnings per share increased 13% year-over-year to $7.13 from $6.30. Total operating net income increased 19% year-over-year to $1.02 billion.

Going forward, BlackRock is poised for growth given its business mix and strong organic and inorganic growth. However, the ongoing market uncertainty and some shifting investor sentiment are expected to cause the asset management business to remain volatile in the near term.

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