reported lower third-quarter profit due to a big charge stemming from the merger of some of its operations with
In the quarter, BlackRock earned $18.9 million, or 28 cents a share, compared with $61.1 million, or 92 cents a share, a year ago. Revenue rose 7% to $323 million.
The current quarter was weighed down by an 88-cents-a-share charge related to the deal with Merrill Lynch. Without the charge, BlackRock would have earned $1.16 a share.
By that measurement, the firm beat the Thomson Financial consensus estimate of $1.16 a share, but revenue fell short of the consensus estimate of $342 million.
BlackRock's deal to merge with Merrill Lynch's asset-management business was completed earlier this year. The deal with Merrill Lynch reduced
equity stake in BlackRock. In the past, BlackRock had been a significant contributor to PNC's earnings.
BlackRock, meanwhile, said it expects 2007 net income to range between $6.30 to $6.65 a share. On an operating basis, the firm is looking for earnings of between $6.65 and $7.05 a share. The analyst consensus estimate has the firm earning $6.87 a share next year.