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BlackRock assets under management hit record $10.5T in Q1

BlackRock (BLK) shares are rising in pre-market trading after beating first-quarter expectations, with adjusted earnings per share at $9.81 against Wall Street estimates of $9.34. The company's assets under management also climbed to a record $10.47 trillion, a 15% boost from a year ago. BlackRock explained its growth potential in infrastructure, retirement, technology, and whole portfolio solutions will drive the momentum forward.

Morning Brief Co-hosts Seana Smith and Brad Smith break down the catalysts for the company's strong performance.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This article was written by Gabriel Roy.

Video transcript

[MUSIC PLAYING]

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BRAD SMITH: Time for some trending tickers. BlackRock shares rising after beating expectations for the first quarter. The company's assets under management also climbing to a record $10.47 trillion, which was a 15% boost from a year ago. You're taking a look at shares on your screen. They are higher by about 4/10 of a percent, so fractional gain.

Lawrence Fink a.k.a. Larry the chairman and CEO of BlackRock's momentum continues to build with accelerating client activity and line of sight into the funding of significant wealth institutional and Aladdin mandates as well here. He also mentioned later on that this is a growth company. And I find it hard to believe that a company with trillions of dollars in assets under management is still in growth phase, but that's what he believes or at least that's what they want to tell to the Street right now.

SEANA SMITH: Yeah, they are that certainly is their message to the street here today. And speaking of growth, they are saying more specifically that they are seeing significant growth potential in infrastructure, in technology, in retirement, and in wholesale and whole portfolio solutions there. So that strong pipeline is what they see driving the momentum of BlackRock here going forward.

And when it comes to the results from BlackRock and the Street's quick reaction to this, we mentioned the fact that it actually beat its adjusted earnings beat here for the quarter assets under management essentially in line with what the Street was looking for. And KBW sum this up as the beat was lower quality in nature but better than feared. And I think that's why we're seeing this move to the upside but we're not seeing a huge move to the upside given the context that we're getting from some analysts here this morning.

And Larry Fink was extremely positive talking about the strong pipeline, saying that it is the best breath that the company has ever seen. So putting into context that he expects some of that momentum to continue here. They expect to continue to grow their assets under management and that he says is going to be driven by infrastructure technology and retirement and some of those main drivers.

BRAD SMITH: A lot of people heard me say Aladdin. They're just like, why is this guy talking about a Disney movie? No, it's their risk management software that BlackRock powers and so it's kind of this software management platform that they have and that play within the portfolio as well.