BlackRock Q3 Profit Rises, Adj. EPS Tops View On Strong Growth In Revenues, AUM - Update

(RTTNews) - Asset manager Blackrock Inc. (BLK) reported Friday higher profit in its third quarter, with double-digit percentage growth in revenues and assets under management. Adjusted earnings beat market estimates.

In pre-market activity on the NYSE, Blackrock shares were gaining around 1.6 percent to trade at $970.49.

The company's third-quarter net income attributable grew 2 percent to $1.63 billion from last year's $1.60 billion.

Earnings per share improved to $10.90 from $10.66 a year ago.

Adjusted net income was $1.72 billion or $11.46 per share, compared to $1.64 billion or $10.91 per share in the prior year.

Analysts on average expected the company to report earnings of $10.33 per share, according to figures compiled by Thomson Reuters. Analysts' estimates typically exclude special items.

Operating income climbed 23 percent to $2.01 billion from last year's $1.64 billion. Operating margin improved to 38.6% from prior year's 36.2%. On an adjusted basis, operating income grew 26%.

Revenue for the quarter climbed 15 percent to $5.20 billion from last year's $4.52 billion, driven by the positive impact of markets on average AUM, organic base fee growth, and higher performance fees.

The Street was looking for revenues of $5.01 billion for the quarter.

The company noted that quarterly revenue and operating income both set new records.

Assets under management or AUM was $11.48 trillion, up 26 percent from $9.10 trillion a year earlier. Average AUM grew 18 percent from last year to $11.07 trillion.

The company recorded $221 billion of quarterly total net inflows, representing 8% annualized organic asset growth and were positive across client type, product type, active and index, and regions.

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