Asset manager BlackRock (BLK) topped analysts’ earnings estimate during Q2 2018, even as revenue growth came in line with the market expectations. The company reported earnings of $6.62 per share. Excluding items, earnings came in at $6.66 per share, topping analysts’ estimate of $6.61 per share. Revenue came in at $3.60 billion, which was in line with analyst estimates.
Revenue during the quarter rose 11% helped by base fees, performance fees, and technology services revenue. The rise in earnings was aided by the lower tax rate. The effective tax rate fell to 23.7% during the quarter, from 30.5%.
The New York-based company reported assets under management (AUM) of $6.299 trillion for the quarter, an increase of 11%.
BlackRock reported its earnings after the major US banks announced mixed earnings results last Friday. JP Morgan Chase (JPM) reported solid Q2 results that beat analysts’ expectations whereas Citigroup (C) shares dropped after the company reported weaker-than-expected quarterly revenue. Shares of BlackRock were down 1% during the pre-market trading session today.
Related: BlackRock reports Q1 2018 results
BlackRock into Cryptocurrencies:
Now that the investment mania for cryptocurrencies is growing, BlackRock is said to be evaluating different options of how it can take an advantage of this emerging cryptocurrency market. The financial giant has apparently set up a team from different sections of the business to investigate cryptocurrencies.
This is surprising because last year the company executive Larry Fink had criticized the digital currency. Similar to BlackRock, JP Morgan too changed its perspective on cyrpto trading and has launched a strategy on crypto trading. Goldman Sachs (GS) announced in May that it is launching a trading desk for bitcoin.
Related: JPMorgan and Citi quarterly results fail to impress investors
But this latest news that BlackRock has initiated cryptocurrency exploration has got the cryptocurrency traders excited.
Related Infographics: Q1 earnings