Cost Cutting, Rally Lift BlackRock's 3Q Profit

NEW YORK (AP) — Investment manager BlackRock Inc. said Tuesday its third-quarter profit jumped 46 percent on gains from cost-cutting and a market rally that whetted investors' appetites for higher-risk investments.

New York-based BlackRock reported net income of $317 million, or $2.27 per share, up from a profit of $217 million, or $1.59 per share, in the year-ago period.

The latest quarter's profit was boosted by a one-time benefit of 33 cents per share from changes in local income tax law. Excluding that gain and other one-time items, BlackRock's adjusted profit was $293 million, or $2.10 per share.

On that basis, the performance beat the expectations of analysts surveyed by Thomson Reuters, who expected a profit of $1.93 per share, on average.

Shares of BlackRock rose $5.61, or 2.4 percent, to $236.04 in midday trading.

Revenue fell 13 percent to $1.14 billion from $1.31 billion in the year-ago period. Analysts predicted $1.12 billion. BlackRock's main revenue source, fees from investment advisory and administration, fell 16 percent as last year's market plunge reduced the value of investments while also eroding the fees BlackRock brings in.