BlackRock, the largest asset manager in the world, reported on Monday second-quarter earnings and revenue that surpassed analyst expectations.
Here is how the company’s results fared compared to Wall Street estimates:
- Earnings: Adjusted $6.66 per share, vs $6.55 expected by Thomson Reuters
- Revenue: $3.605 billion, vs $3.594 billion forecast
- Assets under management: $6.299 trillion, vs $6.372 trillion forecast by StreetAccount
BlackRock said its stronger-than-expected revenue was driven in part by base fees, performance fees and “technology services revenue,” while its higher-than-forecast profit got a boost from a lower corporate tax rate. BlackRock’s effective tax rate fell to 23.7 percent in the second quarter from 30.4 percent in the year-earlier period on an adjusted basis.
The company’s assets under management grew by 11 percent on a year-over-year basis, but still missed analyst expectations.
CEO Larry Fink said the asset-management industry has been hit with a slowdown in flows “associated with investor uncertainty in the current market environment.” Fink added in a statement, however, that “our dialogue with clients and opportunities to provide long-term solutions are more robust than ever before.”
Net inflows at BlackRock totaled $20 billion for the quarter, with long-term inflows coming in at $14.5 billion, well below a StreetAccount estimate of $38 billion. Institutional investors had an outflow of 8.8 billion in the second quarter, while retail investors and BlackRock’s iShares business raked in $5.5 billion and $17.8 billion, respectively, in long-term inflows.
The company’s stock has fallen more than 1 percent this year, lagging the broader S&P 500 which is up nearly 5 percent.
BlackRock’s earnings report follows mixed results from some of the largest U.S. banks. Last week, J.P. Morgan Chase reported better-than-expected earnings and revenue for the previous quarter on a surge in trade revenue. Citigroup, however, reported weaker-than-expected sales for the quarter as deposits and trading revenue disappointed.
Earlier this year, BlackRock said it launched two exchange-traded funds that excluded gun manufacturers and retailers who sell guns to civilians. The move came in the aftermath of a horrific shooting at a school in Florida, which left 17 dead.
The asset manager had also said it would use its voting power to influence how some civilian gun makers are run. BlackRock is the largest shareholder in Sturm Ruger and Smith and Wesson-parent American Outdoor Brands.
This story is developing. Please check back for updates.
Be the first to comment