BlackRock (BLK) - Get Report shares edged higher on Tuesday after the world’s biggest asset manager posted third-quarter earnings that beat analysts’ expectations and assets under management surged to a record $7.81 trillion amid ongoing retail and institutional demand for its array of investment solutions.
The New York-based company said it earned $1.42 billion, or $9.22 an adjusted share, in the third quarter, vs. $1.12 billion, or $7.15 an adjusted share, in the comparable year-ago quarter. Analysts polled by FactSet had been expecting adjusted per-share earnings of $7.77.
Revenue came in at $4.37 billion, up 18% from $3.69 billion a year ago and also above analysts’ forecasts of $3.9 billion. Total assets under management increased by 12% to a record $7.81 trillion from $6.96 trillion. Operating income which also factors in expenses fell to $3.85 billion from $4.01 billion in the same period last year.
Strong inflows into BlackRock’s various investment products, specifically its line-up of iShares ETFs as well as its fixed income and cash offerings, helping bolster both revenue and earnings for the quarter, the company said.
BlackRock recorded some $129 billion of total net inflows, led by continued momentum in fixed income and cash management, with positive flows “across all regions, investment styles and product types,” it said, noting that more than half of those flows were driven by clients in Europe and Asia.
“Each of our strategic investment areas, including iShares ETFs, alternatives and technology, continue to grow, while strong investment performance has driven positive active flows over the last year,” CEO Laurence Fink said in a statement.
Shares of BlackRock were up 3.17% at $634.78 in trading on Tuesday.