BlackRock profit beats Street estimates as markets recover

(Reuters) – BlackRock Inc (BLK.N) The results beat Wall Street estimates on Friday, aided by investors who turned to the world’s largest asset manager’s bond funds in the second quarter, as global financial markets rebounded strongly from a brutal liquidation triggered by COVID in March.

FILE PHOTO: People are seen in front of a showroom hosting BlackRock in Davos, Switzerland, on January 22, 2020. REUTERS / Arnd Wiegmann

BlackRock ended the quarter with $ 7.32 billion in assets under management, up from $ 6.84 billion the year before.

The S&P 500 .SPX increased 20% in the second quarter after dropping by that amount in the first three months of 2020 when the coronavirus pandemic hit the economy.

“We had more conversations with our clients in the last six months than we have probably had together in years,” Chief Executive Larry Fink said in an interview.

“Customers are looking for BlackRock more than ever.”

BlackRock reported a 21% increase in quarterly earnings as investors invested money in their fixed income funds and cash management services.

The New York-based company’s net income increased to $ 1.21 billion, or $ 7.85 per share. Analysts had expected a profit of $ 6.99 per share, according to IBES data from Refinitiv. (

The asset manager’s fixed income funds raised $ 60.27 billion in new money. Its cash management business attracted $ 24.2 billion in net inflows in the second quarter.

“Better investor sentiment led to a solid asset build,” said Kyle Sanders, an analyst at St. Louis-based financial services firm Edward Jones.

“We are most encouraged by the strong rebound in asset flows as we believe that sustained growth in flow above industry peers is a key driver for action,” he said.

The asset manager technology business, a key growth area for the company, reported a 17% increase in revenue.

BlackRock’s financial markets advisory unit, which manages the United States Federal Reserve bond purchase program, generated $ 39 million in revenue, up from $ 53 million in the same quarter a year ago.

BlackRock’s shares, up about 13% on the year, were up about 1% in early trading on Friday.

Reports by Saqib Iqbal Ahmed New York and Bharath Manjesh in Bangalore; Sriraj Kalluvila and Steve Orlofsky edition

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