BlackRock (BLK) stock jumped 4% premarket on Wednesday after the New York-based money manager reported a third quarter profit and revenue that topped analyst estimates.
BlackRock reported adjusted net income of $2.62 billion, or $15.93 per share, exceeding the $14.15 per share analysts expected. Revenue climbed 19% to $7.75 billion over the same period, compared with expectations of roughly $7.4 billion.
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The results offered a fresh look into how the Wall Street giant is benefiting from its massive scale and expansion into private markets as investors navigate higher interest rates and volatile financial markets.
BlackRock CEO Larry Fink emphasized that a major differentiating factor for his firm is size.
“BlackRock’s ability to originate and structure at scale is leading to premier financing relationships and sourcing opportunities for our clients,” Fink said, adding that the money manager’s AI infrastructure fund made its first deployment in the quarter.
The firm attracted $205.5 billion in net new client money during the quarter, compared with the $171.5 billion analysts expected. That included $78.2 billion in fixed income inflows and $52.4 billion into stocks.
The asset manager’s private markets attracted $15.3 billion, exceeding the $12.2 billion expected, while performance fees of $630 million were well above the $431 million forecast.
BlackRock said its assets under management rose 15% from a year earlier to a record $15.49 trillion, fueled by strong investor inflows, though the total was below analyst expectations for $15.57 trillion.
David Hollerith covers a range of developments throughout the financial sector, from Wall Street to banking and asset management to crypto and fintech. Email him at david.hollerith@yahoofinance.com. Follow him on X at @DsHollers.
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