BlackRock, Inc. (BLK) Q3 Earnings Top Estimates As Assets Surge

Lloyd Doyle
October 11, 2017

Top asset manager BlackRock (BLK) topped earnings and revenue estimates Wednesday as the shift toward exchange traded funds lifted total assets under management to almost $6 trillion.

BlackRock's iShares ETF business saw $52.3 billion in long-term net inflows, with $33.1 billion from equity inflows, putting assets under management for iShares at $1.64 trillion.

News of the rise came as the USA investment management giant comfortably beat Wall Street expectations with its third quarter results.

BlackRock's revenue increased by 14 per cent year on year, to $3.23bn, driven by growth in base fees, performance fees and income from its technology and risk management offering.

BlackRock saw net outflows of $3.3bn from its institutional active equity strategies in the third quarter following the firm's decision earlier this year to move $6bn in assets from U.S. actively managed equity funds to quantitative investment strategies.

Third quarter net inflows totalled US$96.1bn, with iShares responsible for US$52bn of that.

The asset manager's active funds also took in almost US$6bn in the third quarter, although the active equity funds suffered another US$3.3bn of net outflows.

We're seeing clients looking to put more money to work", BlackRock CEO Larry Fink told CNBC's "Squawk Box" shortly after the company's results were released."What's going on is we're seeing a change in market sentiment.

BlackRock, Inc. shares were unchanged in premarket trading Wednesday.

"Strong organic asset and base fee growth are a direct result of the investments we are making in our platform".

The company said cash assets rose 6 percent from a year earlier to $425.4 billion.

The company's stock has been on fire this year, advancing 21.5%.

Other reports by Iphone Fresh

Discuss This Article