Blackrock profit drop misses expectations
Blackrock disappointed Wall Street expectations this afternoon after posting a worse-than-expected fall in quarterly profits.
The world’s largest asset manager reported net income of $6.41 per share, or $1bn (£800m), falling from $6.62 per share in the same quarter last year and missing Refinitiv estimates of $6.50 per share.
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A slump in revenue at its investment advisory and securities lending division, along with rising costs, blighted the firm during the second three months of 2019.
Total revenue tumbled 2.2 per cent year-on-year, coming in at $3.52bn.
However, investor inflows appeared buoyant during the period, as the company’s assets under management (Aum) climbed 8.6 per cent to $6.8tn and net inflows were $151bn.
Total expenses grew nearly four per cent to $2.25bn.
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Larry Fink, chief executive of BlackRock, said: “While organic base fee growth of 3 per cent and the year-over-year revenue decline reflected certain market headwinds, our second-quarter results validate BlackRock’s unique ability to bring together the entire firm to meet clients’ needs in any market environment.”
The New York-based firm’s share price, which has edged down slightly over the last 12 months, climbed marginally before trading began today.