How BlackRock Is Improving Its Operating Margins in 2018

BlackRock (BLK) commands the highest operating margins among its industry peers and is improving it further by deploying technology, economies of scale, and automated advisories. The company has garnered operating margins in the range of 42.0%–45.0% in recent quarters. Its operating margins of 43.0%–45.0% helped the company command higher valuation multiples when compared with industry averages. BlackRock spent ~$2.2 billion in the first quarter, a rise of 13.3% from the previous year on higher compensation, general spending, direct fund expenses, and distribution expenses.