BlackRock Inc is the world’s largest asset manager company and it has recently turned over a better-than-expected quarterly profit on Wednesday since investors have poured more money into the company’s funds. BlackRock’s assets jumped to a record $9.49 trillion a year earlier
The company has continued to gather assets at a constant rate since investors deployed money across BlackRock’s product types and assets classes. The US economy displayed signs of a recovery over the past quarter, helped by the government input and steady vaccination programs.
However, despite the better-than-expected results, BlackRock’s shares still fell by 3.3% to $877.98, a near 1-week low. Investors have been disappointed by the inflows coming in at $81 billion, down from $172 billion in the previous quarter. A combination of those factors may have driven away investors and they would have to rethink how to treat Wednesday’s weakness as a buying opportunity.
BlackRock remains well placed to be a leader in the asset management industry, analysts said. “Despite them having $9.5 trillion and being so big, they are still best positioned to deliver the best growth over the next couple of years, relative to their peers,” Sanders said. The company’s adjusted net income rose to $1.55 billion, or $10.03 per share, in the three months ended June 30, from $1.21 billion, or $7.85 per share, a year earlier.
Analysts on average had expected a profit of $9.46 per share.
Revenue rose 32% to $4.82 billion, helped by higher performance fees and 14% growth in revenue from technology services. BlackRock’s shares rose 16% during the quarter ended June 30, compared with a 15% gain for a Thomson Reuters index that includes more than a dozen of BlackRock’s industry rivals in the United States.
