BlackRock beats profit forecasts as assets climb to $15.49 trillion
BlackRock, the world's largest money manager, beat Wall Street's profit forecasts on Wednesday and drew $205 billion in new client money in the third quarter, Reuters reported. Its assets under management rose to $15.49 trillion from $13.46 trillion a year earlier, Reuters said.
BlackRock, the world's largest money manager, reported third-quarter results on Wednesday that topped Wall Street's forecasts, Reuters reported.
Clients added $205 billion in new money during the quarter, according to Reuters, and the firm's shares rose 5% in premarket trading, the news agency said.
BlackRock earned $1.66 billion, or $10.57 a share, The Associated Press reported. Quarterly revenue came in at $7.75 billion, also above analysts' forecasts, the AP said.
Excluding certain items, the company earned $15.93 a share, comfortably above the $14.13 that analysts had expected, according to LSEG data cited by Reuters.
The assets BlackRock manages rose to $15.49 trillion, Reuters reported. That compares with $13.46 trillion a year ago and $15.34 trillion at the end of June.
Much of that growth came from the firm's iShares exchange-traded funds, which attracted $134.5 billion in new investments during the quarter, Reuters reported. Rising stock valuations also lifted the value of the investments the firm manages.
"Market fundamentals are strong and well supported, with higher margins and earnings momentum catalyzed by new technology," CEO Larry Fink said in a statement, Reuters reported.
BlackRock has been expanding into private credit, meaning loans made directly to companies outside the traditional banking system, which typically generate higher fees than its exchange-traded funds. The firm took in $15.31 billion for private markets in the quarter, Reuters said.
Withdrawal requests from investors in BlackRock's HPS Corporate Lending Fund also eased to about 11.5% of shares in the quarter, down from 13.3% in the second quarter, according to Reuters.
BlackRock aims to bring in more than $35 billion in yearly revenue before the decade is out, Reuters reported. The company wants private markets and technology to contribute more than 30% of that total.
What we know: BlackRock's profit beat forecasts, and the assets it manages reached $15.49 trillion.
What we don't: Whether the strong flows will hold up if bond yields keep rising.
Where outlets agree Reuters and the AP both report that BlackRock earned an adjusted $15.93 a share and beat Wall Street's forecasts.
Where they differ The outlets cited here report the same key facts so far.