BlackRock Profit Tops Estimates as Margins Improve

NEW YORK ( TheStreet) -- BlackRock ( BLK), the world's biggest asset manager, posted adjusted third-quarter profit of $2.83 a share, topping the estimates of analysts, as revenue rose and margins improved.

Analysts polled by Thomson Reuters expected BlackRock to earn $2.67 a share in the quarter.

Net income was $595 million, or $3.23 a share, up from $551 million, or $2.83, a year earlier. Adjusted net income fell 3% to $521 million.

Revenue rose 6% to $2.23 billion.

BlackRock said adjusted operating margin in the third quarter was 40.1%, up from 38.4% a year earlier.

"Our ability to achieve an as adjusted operating margin of 40%, even in the current challenging environment, reflected both strong expense discipline and the benefits of product breadth across active and passive strategies. Our business continues to produce strong free cash flow and we remain committed to returning cash to shareholders," said CEO Laurence Fink, in a statement Wednesday.

Assets under management fell 3% to $3.345 trillion.

-- Written by Joseph Woelfel

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