BlackRock Q3 Profit Up 14%, Matches Estimates

(RTTNews) - Investment manager BlackRock Inc. (BLK) on Wednesday a 14 percent increase in profit for the third quarter on higher revenues, reflecting growth in markets, long-term net inflows and strength in BlackRock Solutions. Adjusted earnings matched analysts' expectations, while revenues missed their estimates. Assets under management rose 12 percent.

Laurence Fink, Chairman and CEO of BlackRock said, "Long-term net inflows of more than $25 billion reflected positive flows across all major asset classes and geographies, driven by demand for outcome-oriented solutions, unconstrained fixed income and retail alternative strategies. We are seeing the steps we have taken to further enhance performance and invest in our brand drive accelerating growth in retail flows."

Long-term net inflows totaled $25.28 billion in the quarter, and were positive across all regions. The company noted that the long-term net inflows were driven by Retail and iShares exchange traded funds. The iShares business accounted for about 80 percent of the long-term funds and also represented about 23 percent of BlackRock's total assets under management.

Investment advisory, administration fees and securities lending revenue for the third quarter increased 6 percent to $2.15 billion, due to growth in long-term average AUM. BlackRock Solutions and advisory revenue rose 22 percent to $156 million from last year. The latest quarter reflected an $18 million increase in Aladdin business revenues and higher advisory assignments revenue.

Third-quarter net income attributable to company increased to $730 million or $4.21 per share from $642 million or $3.65 per share in the year-ago period.

Excluding one-time items, adjusted net income attributable to company was $672 million or $3.88 per share for the quarter, compared to $610 million or $3.47 per share in the previous-year quarter. On average, 20 analysts polled by Thomson Reuters expected the company to report earnings per share of $3.88 for the quarter. Analysts' estimates typically exclude special items.

Total revenue for the quarter grew 7 percent to $2.47 billion from $2.32 billion in the same period last year. Analysts had a consensus revenue estimate of $2.48 billion for the quarter.

In the latest quarter, adjusted operating profit increased 12 percent and operating margin improved 50 basis points from last year to 41.2 percent.

The company's assets under management or AUM as at the end of the third quarter was $4.10 trillion, up 12 percent from the year-ago period.

In Wednesday's regular session, BLK is trading at $290.76, up $8.49 or 3.01 percent on a volume of 169,646 shares.