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BlackRock Falls as Asset-Inflow Data Lag Analysts' Estimates

Money manager BlackRock said its second-quarter net asset inflow was $80.96 billion, lagging the consensus analyst estimate of $114.29 billion.

BlackRock  (BLK) - Get BlackRock, Inc. Report shares fell on Wednesday after the world’s biggest money manager reported that its second-quarter net inflow totaled $80.96 billion, lagging analysts’ consensus estimate of $114.29 billion.

To be sure, the company’s revenue and adjusted profit exceeded expectations. Adjusted earnings per share hit $10.03, exceeding the analyst projection -- derived from a Bloomberg survey -- of $9.48. Revenue registered $4.82 billion, up 32% from last year and above analyst forecast of $4.58 billion.

BlackRock’s assets under management rose 30% in the second quarter, to $9.5 trillion from $7.3 trillion.

BlackRock recently traded at $879.05, down 3.2%. It has climbed 12% in the past six months, as financial markets have gone gangbusters.

The company said it would raise base salaries 8% for all active employees to reward them for their hard work during the pandemic.

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Morningstar analyst Greggory Warren last month put BlackRock’s fair value at $880.

“We've increased our fair value estimate for wide-moat-rated BlackRock from $810 to account for improvements in the company's assets under management, as well as our own near- to medium-term assumptions, since our last update,” he wrote.

“The biggest differentiators for the firm are its scale, ability to offer both passive and active products, greater focus on institutional investors, strong brands, and reasonable fees.”

Warren is particularly impressed with BlackRock’s iShares ETF platform as well as technology that provides risk management and product/portfolio construction tools directly to end users.

In other BlackRock news, TheStreet’s Crypto reported last month that a recent job posting from BlackRock showed that it was looking to build a new blockchain-specific strategy for its portfolio management system, Aladdin.