BlackRock Results Top Estimates

(RTTNews) - Investment manager BlackRock Inc. (BLK) Wednesday reported higher third-quarter profit, as revenue rose 15 percent, with 10 percent growth in assets under management. Earnings per share, as well as revenues topped analysts' expectations.

For the third quarter, net income attributable to the company increased to $917 million or $5.37 per share from $730 million or $4.21 per share reported last year.

Adjusted earnings per share were $5.21, while the firm posted $3.88 per share in the prior year.

On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $4.66 per share for the quarter. Analysts' estimates typically exclude special items.

At the end of the quarter, the company's assets under management or AUM totaled $4.524 trillion, up 10 percent from $4.096 trillion in the previous year. Meanwhile, AUM declined 2 percent from the sequential second quarter.

Long-term net inflows for the recent quarter was $28.7 billion. During the period, the company raised $7.4 billion of net new flows in multi-asset strategies, driven by its flagship global franchises. In iShares, net new flows were $18.2 billion.

Cash management AUM increased 5 percent to $281 billion, while Advisory AUM decreased 24 percent to $23.2 billion due to disposition portfolio liquidations.

Laurence Fink, chairman and CEO of BlackRock said, "We once again saw strong interest in our global unconstrained fixed income platform in the third quarter, raising more than $4 billion of net new flows in our Strategic Income Opportunities and Fixed Income Global Opportunities funds, collectively, and that momentum has continued into the fourth quarter."

Total revenue for the three-month period grew 15 percent to $2.85 billion from $2.47 billion in the preceding year. Wall Street expected revenues of $2.82 billion.

Operating margin improved 150 basis points to 40.6 percent from 39.1 percent a year earlier. Adjusted operating margin was 44.2 percent, up 300 basis points from last year.

BlackRock shares closed Tuesday's trading at $306.74, up 0.93 percent.