Investment management giant Blackrock Inc. (BLK) reported Monday higher profit in its second quarter with strong revenues, despite flat margins. Adjusted earnings and revenues, meanwhile, missed Wall Street estimates.
For the second quarter, net income attributable to BlackRock increased 9 percent to $857 million from last year’s $789 million. Earnings per share were $5.22, up 10 percent from $4.73 a year ago.
Adjusted net income was $860 million or $5.24 per share, compared to last year’s $797 million or $4.78 per share.
On average, 13 analysts polled by Thomson Reuters expected earnings of $5.39 per share for the quarter. Analysts’ estimates typically exclude special items.
Adjusted operating income grew 6 percent to $1.25 billion, while adjusted operating margin was 43.9 percent, same as last year.
Revenue for the quarter grew 6 percent to $2.97 billion from $2.80 billion in the prior year. Analysts expect revenues of $3.01 billion for the quarter.
Assets under management or AUM climbed 16 percent to $5.69 trillion from $4.89 trillion a year ago.
The company noted that long-term net inflows of $96.2 billion and $6.2 billion from clients in the Americas and Asia-Pacific regions, respectively, were partially offset by net outflows of $8.9 billion from clients in EMEA.
As of June 30, BlackRock managed 64% of its long-term AUM for investors in the Americas and 36% for clients in EMEA and Asia-Pacific.
Laurence Fink, Chairman and CEO of BlackRock, said, “While significant cash remains on the sidelines, investors have begun to put more of their assets to work…..The organic growth that BlackRock is experiencing is a direct result of the investments we’ve made over time to build our platform.”
Fink added that the company has seen strong fundraising momentum in illiquid alternatives, with $9 billion in flows and commitments year-to-date, as the investments the company made in its platform over time are resonating with clients.
“Going forward, technology-enabled scale will be…