BlackRock Profit Tops Expectations

By Chelsey Dulaney 

BlackRock Inc. reported better-than-expected profit and revenue growth in its second quarter, as the money manager benefited from higher base fees.

Chief Executive Laurence Fink said asset flows were impacted by market volatility in the quarter.

BlackRock said $23.6 billion of active and iShares net inflows drove base fee growth, offsetting $30.9 billion of low-fee net outflows. The iShares division offers ETFs, a type of fund that trades on an exhange.

Overall, total long-term net outflows were $7.3 billion in the quarter.

Assets under management grew to $4.72 trillion from $4.59 trillion a year ago, but edged down from $4.77 trillion at the end of the previous quarter.

Overall, the firm reported earnings of $819 million, or $4.84 a share, up from from $808 million, or $4.72 a share, a year ago. Excluding certain items, earnings were $4.96 a share in the quarter.

Revenue grew 4.6% to $2.91 billion.

Analysts polled by Thomson Reuters had forecast $4.80 a share in earnings and $2.85 billion in revenue.

Write to Chelsey Dulaney at [e-mail]

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