BlackRock Earnings Call Analysis: BLK Analysis to Kick Off the Unofficial Start of Earnings Season

Today was the unofficial start to earnings season. What stood out in Amenity Viewer from the calls this morning? Let's explore with BlackRock.

Please note: This in no way represents investment advice. All transcript text provided by S&P Global Market Intelligence.

We Saw a Significant Downtick at BlackRock, With an Amenity Score of 0 vs 31 Last Quarter

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With Amenity Viewer, we go beyond the score to understand the underlying drivers of the weakness.

A quick dive into the Key Drivers in the transcript itself revealed several headwinds

"We also saw accelerated de-risking by many clients in an environment marked by continuing trade tensions, a further slowdown in emerging markets and the steepening yield curve."

"Cyclical and secular headwinds impacting today's asset management business."

"Political instability in certain markets is increasing."

"Emerging markets and commodities remain under pressure."

"Investors worldwide are taking a defensive posture highlighted by the market volatility we saw last week."

"Asset management industry flows overall has slowed considerably."

It's never all negative. The offsets were highlighted by: data solutions, ETFs, and ESG

"Overall demand remains strong for our full range of technology solutions."

"Global iShares generated quarterly net inflows of $34 billion, driven by continued strong demand from long-term investors in our core franchise."

"Demand has risen (for fixed income ETFs) as investors gain more confidence in their benefits and simplicity"

"Sustainable investing for ESG is another area where an increasing demand from clients globally, coupled with BlackRock's investment in technology expertise is driving large-scale momentum."

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Written By

Mark Zepf

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