Asset manager BlackRock (BLK) reported a 29% jump in earnings for the third quarter helped by higher non-operating income and lower effective tax rate. The bottom line came in ahead of analysts’ expectations. Shares of BlackRock were down 2.8% during the pre-market session after the top line missed estimates.
Net income climbed 29% to $1.22 billion and earnings soared 31% to $7.54 per share. On an adjusted basis, earnings jumped 27% to $7.52 per share.
Revenue rose 2% to $3.58 billion driven by 4% base fee growth and 18% technology services revenue growth. Asset under management increased 8% year-over-year to $6.4 trillion, which includes $28 billion of net AUM addition from strategic transactions.
The company generated $11 billion of long-term net inflows in the quarter, led by iShares, active multi-asset and illiquid alternatives. Over the last twelve months, total net inflows were $177 billion that reflected continued growth in key areas of its business, including iShares, multi-asset solutions, illiquid alternatives, and Aladdin.
Related: JPMorgan Chase Q3 2018 results
Segment-wise, investment advisory, administration fees, and securities lending revenue rose by 3.7% on the impact of higher markets and organic growth on average AUM. Technology services revenue grew by 18% helped by higher revenue from institutional Aladdin.
However, investment advisory performance fees fell by 21% due to lower fees from liquid alternative and long-only products. Distribution fees dropped by 6.4%.
Related: Citigroup Q3 2018 results
BlackRock reported its earnings after the major US banks announced mixed earnings results last Friday. JP Morgan Chase (JPM) reported solid Q3 results backed by an impressive performance from the commercial banking segment whereas Citigroup (C) posted a 12% jump in Q3 earnings helped by the lower effective tax rate.
Shares of BlackRock ended Monday’s regular session down 0.18% at $426.94 on the NYSE. The stock has fallen over 10% in the past year and over 16% in the year so far.
Most Popular
Microsoft (MSFT) reports higher revenue and profit for Q3 2024
Microsoft Corp. (NASDAQ: MSFT) on Thursday said its third-quarter 2024 earnings increased year-over-year, reflecting strong performance by the tech giant’s main operating segments. Third-quarter revenues came in at $61.86 billion,
GOOG, GOOGL Earnings: All you need to know about Alphabet’s Q1 2024 earnings results
Alphabet Inc. (NASDAQ: GOOG, GOOGL) reported its first quarter 2024 earnings results today. Revenues increased 15% year-over-year to $80.5 billion. Revenue growth was 16% in constant currency. Net income was
MRK Earnings: Merck Q1 2024 profit jumps on 9% revenue growth
Pharmaceutical company Merck & Co. Inc. (NYSE: MRK) reported a sharp increase in adjusted earnings for the first quarter of 2024, aided by an increase in revenues. First-quarter worldwide sales