BlackRock Inc. (NYSE:BLK) posted a disappointing first-quarter result on Thursday as the company generated lower fees from the volatile global market early in the year.
The world’s largest money manger said that profit dropped 20 percent to $657 million, or $3.92 a share, from $822 million, or $4.84, a year ago. Excluding the restructuring charge and certain items, earnings was $4.25 a share in the quarter ended in March, compared with $4.89 a share a year earlier. Analysts had project a profit of $4.30 a share in the period.
Revenue also fell 3.6 percent to $2.62 billion compared to the prior year, missing analysts’ estimate by $110 million. Adjusted operating income fell 3 percent to $10.47 billion and operating margin was up 40 basis points to 41.6 percent.
“While we of course were not immune to the effects of market movements, which impacted both base fees and performance fees this quarter, the magnitude and diversification of our inflows speak to the differentiation of BlackRock’s platform and our ability to serve our clients,” Chief Executive Laurence Fink said in the statement.
The company also undertook a restructuring plan in the first quarter. In March, a person familiar with the matter said that BlackRock undertook the biggest layoffs in company’s history, cutting about 400 jobs, or roughly 3 percent of its workforce. The move aims to streamline its business and improve efficiency. It took a $76 million charge in the first quarter related to those efforts.
BlackRock shares rose 1.31 percent to $352.86 at 11:37 A.M. in New York.