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BlackRock Crushes Profit Estimates But AUM Falls to Lowest in 2 Years

Published 13/10/2022, 10:56 pm
© Reuters.
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By Senad Karaahmetovic

BlackRock (NYSE:BLK) reported much better-than-expected Q3 profit figures, although the company missed on average analyst estimates for some other important business performance metrics.

BlackRock reported earnings per share of $9.55 on revenue of $4.31 billion, which compares to the consensus of $7.65 on sales of $4.35 billion. Base fees and securities lending, from which the company generates a vast amount of its revenues, came in at $3.53 billion, slightly ahead of the consensus of $3.48 billion.

Assets under management (AUM) fell 16% YoY to $7.96 trillion, missing the average analyst estimate of $8.27 trillion, and down to their lowest since 2020.

Laurence D. Fink, Chairman and CEO, said: “We once again saw strong growth in bond ETFs, with $37 billion of net inflows. Active strategies reflected momentum from significant outsourcing mandates and continued demand for alternatives, where we raised $6 billion across commitments and net inflows. We had record Aladdin client mandates in the first nine months of 2022, with over half coming from multi-product solutions.”

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