BlackRock falls short of estimates as revenues slide
US asset manager BlackRock fell short of estimates on the Street in its last trading quarter as investment advisory and lending revenues dropped amid a rise in costs.
Revenues fell 2.2% to $3.52bn and net income attributable to the group dropped to $1bn, or $6.41 per share, from the $1.07bn reported a year earlier as expenses rose almost 4% to $2.25bn.
Analysts had expected a profit of $6.50 per share.
BlackRock's institutional funds added $87.36bn in the second quarter, up from the $29.12bn added in the three months ended 31 March.
The firm wrapped up the quarter with $6.84trn in assets under management, up from $6.30trn a year earlier as investors put more money into BlackRock's actively managed funds aimed at beating the market over the low-fee passive-investment products.
As at 1300 BST, BlackRock shares were broadly flat, down just 0.029% in pre-market trading at $475.