BlackRock posts second-quarter profits that meet estimates

Larry Fink Interview Pic

BlackRock delivered quarterly earnings and revenue that met analysts' expectations on Thursday.

The asset management giant posted adjusted second-quarter earnings of $4.78 per share, down from $4.96 in the year-earlier period. Revenue fell to $2.804 billion from $2.905 billion a year ago.

Analysts polled by Reuters expected the world's largest money manager to post quarterly earnings per share of $4.78 in the second quarter, on revenue of $2.804 billion.

The firm's assets under management rose 4 percent on a year-over-year basis to $4.9 trillion.

BlackRock noted that base fees fell 2 percent year over year, as more investors shifted money to fixed income and cash from equities. Meanwhile, iShares long-term inflows came in at $15.7 billion, up from the $10.9 billion last year, primarily driven by fixed-income net inflows.

The company's stock was unchanged in the premarket.

Chairman and CEO Larry Fink said in a statement that clients "are facing unprecedented challenges as they attempt to navigate the current investment environment."

"Political and macroeconomic uncertainty, historically low yields and elevated market volatility are leading clients to pause, as evidenced by more than $55 trillion in bank deposits in the US, China and Japan alone," he said.

Shares of BlackRock, while up only 4.4 percent year-to-date, have surged over the past six months, gaining nearly 17 percent.

In the first quarter, BlackRock announced it would cut 400 jobs and take a $76-million charge after posting lackluster results. The firm posted adjusted earnings per share of $4.25, missing estimates, amid a volatile market.

BlackRock is one of three firms that dominate the U.S. market for exchange-traded funds, or ETFs, which is rapidly expanding and seen as mushrooming further over the next five years .

Dow component JPMorgan Chase also reported quarterly earnings, easily beating expectations .

Correction: This story was revised to include an updated estimate by Reuters of BlackRock's second-quarter earnings.

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