BlackRock beats expectations, as earnings increase 27% despite outflows

BlackRock, the largest asset manager in the world, reported third-quarter earnings Tuesday, beating expectations with adjusted earnings per share of $US7.52.

Earnings were up 27% on the heels of lower taxes and a higher nonoperating income. Analysts had expected the New York-based asset manager to report adjusted earnings per share of $US6.84.

Assets under management increased 8% from the year-ago period, to $US6.4 trillion.

Here are the rest of the key numbers:

  • Revenue: $US3.6 billion, beating expectations by $US100 million
  • Net income: $US1.2 billion, up 29% from 2017
  • Adjusted earnings per share: $US7.52
  • Assets under management: $US6.4 trillion, under analysts’ expectations of $US6.52 trillion
  • Total net flows: Outflows of $US3 billion

    • iShares: Net inflows of $US33.7 billion
    • Institutional: Outflows of $US24.8 billion

“BlackRock generated $US11 billion of long-term net inflows in the third quarter, despite more than $US30 billion of institutional non-ETF index equity outflows that resulted from de-risking associated with ongoing divergent monetary policy and geopolitical uncertainty,” CEO Larry Fink said in an earnings statement. “Over the last twelve months, total net inflows of $US177 billion reflect continued growth in key areas of our business, including iShares, multi-asset solutions, illiquid alternatives and Aladdin.”

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