New York investment manager BlackRock profit beats estimate but asset growth pauses

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New York investment manager BlackRock profit beats estimate but asset growth pauses

On Wednesday, BlackRock, Inc., the New York City-headquartered world’s largest asset management company having had more than a $9 trillion worth of assets under management, had handsomely topped a Wall Street estimate for its third-quarter profits, mostly buoyed up by an increase in performance fees alongside a soaring demand of its actively managed funds.

Nevertheless, although, a sharp pick up in demand of its sustainable funds had added to further impetus on Q3, 2021 profit growth that ended on September 30, an upsized market volatility had led to an unprecedented stagnation at its asset growth.

In point of fact, latest upbeat quarterly earnings’ report from BlackRock Inc came against the backdrop of a roaring US capital market, as market participants were reportedly trying to make the most out of a post-pandemic recovery, while global markets also had been on cloud nine for most part of third quarter, largely propelled by quick progress on vaccination drives alongside a flesh-up in fiscal and monetary assistance.

Nonetheless, despite a high-flying US capital market, S&P 500 had closed out second quarter nearly flatlined with BlackRock reporting its worst quarterly performance in more than six quarters. BlackRock, in tandem, had witnessed a tough time to grow assets over the latest quarter as beforementioned.

BlackRock beats Q3, 2021 profit forecasts

According to BlackRock, Inc’s quarterly earnings’ report for third-quarter of 2021, the world’s largest asset management firm had wrapped up the latest quarter with a whopping $9.46 trillion worth of assets under management compared to a $7.81 trillion a year earlier, while BlackRock’s revenues surged by 16 per cent to $5.05 billion with tech services revenue soaring 13 per cent to $320 million.

On an adjusted basis, BlackRock’s net income grew 19 per cent to $1.69 billion or $10.95 a share on a year-on-year basis, beating an analysts’ estimate of $9.35 a share, IBES data from Refinitiv had unfurled.

Followed by the quarterly earnings’ report, BlackRock Inc shares, that had climbed nearly 16 per cent year-to-date, wrapped up the session just a notch shy of 3.0 per cent to $869.42 apiece after leaping as much as 2.5 per cent in pre-market trading.