Blackrock Inc. (NYSE: BLK) reported its second quarter financial results as well as stronger-than-expected results. Despite the growth, the Company anticipates an industry-wide slowdown in flow associated with investor uncertainty.
For the second quarter, Blackrock reported revenue of USD 3.61 Billion, growing 11% year over year and topping analysts’ estimates of USD 3.59 Billion. The Company reported an adjusted EPS of USD 6.66, beating Thomson Reuters’ forecast of USD 6.55.
Blackrock said the strong revenue growth was driven by base fees, performance fees and technology services revenue. The Company’s assets under management grew by 11% year over year to USD 6.29 Trillion, missed expectations of USD 6.37 Trillion.
The Company reported total net inflows of USD 20 Billion, but Chief Executive Officer and Chairman, Laurence Fink, says that there is industry-wide slowdown due to the current state of the market. Despite the current slowdown, Fink says the Company’s dialogue with clients and opportunities to provide long-term solutions are stronger than ever.
“We have seen markets like these before, and BlackRock’s product breadth, unparalleled portfolio construction capabilities, digital tools and technology uniquely position us to deliver long-term value to clients and shareholders,” said Fink.
Long-term inflows totaled USD 14.5 Billion, below StreetAccount’s estimates of USD 38 Billion. Blackrock’s retail investors had inflow of USD 5.5 Billion. Its iShare business reported USD 17.8 Billion, while its institutional investors reported an outflow of USD 8.8 Billion.
Blackrock’s shares quickly fell after the opening bell on Monday. Shares were trading 1.63% lower early morning. Shares are now down 2.84% this year, below the S&P 500’s average of 5%.