Stock Market News

BlackRock Inc reported a bigger fall in quarterly profit than expected

2022.07.15 17:35

BlackRock Inc reported a bigger fall in quarterly profit than expected
BlackRock Inc reported a bigger fall in quarterly profit than expected

Budrigannews.com -BlackRock Inc reported a bigger fall in quarterly profit than expected on Friday as the turmoil in global markets shrank the world’s largest asset manager’s fee income and retail investors redeemed their savings.

Adjusted profit fell to $1.12 billion, or $7.36 per share, for the three months ended June 30, from $1.61 billion, or $10.45 per share, a year earlier. It missed an average analyst estimate of $7.90 per share, according to IBES data from Refinitiv.

Retail investors withdrew roughly $10 billion in the quarter, BlackRock (NYSE:BLK) showed, the first drop since the beginning of the pandemic in March 2020. Still, the firm attracted $89.6 billion in total net inflow from clients.

BlackRock’s assets under management (AUM) fell 11% to $8.49 trillion compared to last year, well below the $10 trillion milestone from the fourth quarter of 2021. Besides market turmoil, a stronger dollar also made it more difficult for BlackRock as 35% of its assets under management are in Europe and Asia.

“Investors are simultaneously navigating high inflation, rising rates and the worst start to the year for both stocks and bonds in half a century,” said Chief Executive Officer Larry Fink said in a statement.

The current macroeconomic environment, ridden with worries of surging inflation, geopolitical turmoil and rate hikes, has only added to the pressures of fund managers, as a large part of their business is dependent on market conditions.

Moreover, the pullback in the pandemic-era stimulus from the U.S. Federal Reserve has hit the risk appetite of investors who have rejigged portfolios this year towards safe-haven and fixed-income products, with equity markets tumbling on recession fears.

More rate hikes by the U.S. central bank to combat decades-high inflation could put more pressure on asset managers as investors refrain from large investments. They also face tough comparisons to last year, when easy monetary policy and cheap borrowing led to frenzied investment activity.

“As expected, revenue and EPS were soft compared with recent quarters, proving that even BLK is not immune to a market downturn, said senior equity research analyst Kyle Sanders, at Edward Jones.

BlackRock’s shares, which have shed nearly 36% so far this year, were down 0.8% in premarket trading after results.

Revenue in the quarter for BlackRock fell 6% to $4.53 billion, also missing analysts’ estimate.

The company bought back shares worth $500 million in the quarter.

 

BlackRock Inc reported a bigger fall in quarterly profit than expected

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 98,394.36 0.24%
ethereum
Ethereum (ETH) $ 3,424.12 2.19%
tether
Tether (USDT) $ 1.00 0.02%
solana
Solana (SOL) $ 256.95 1.63%
bnb
BNB (BNB) $ 664.65 2.59%
xrp
XRP (XRP) $ 1.47 4.07%
dogecoin
Dogecoin (DOGE) $ 0.438068 4.46%
usd-coin
USDC (USDC) $ 1.00 0.02%
cardano
Cardano (ADA) $ 1.07 1.43%
staked-ether
Lido Staked Ether (STETH) $ 3,423.22 2.24%
tron
TRON (TRX) $ 0.215288 3.49%
stellar
Stellar (XLM) $ 0.588336 38.51%
avalanche-2
Avalanche (AVAX) $ 42.68 3.26%
the-open-network
Toncoin (TON) $ 6.48 16.27%
shiba-inu
Shiba Inu (SHIB) $ 0.000027 0.44%
wrapped-steth
Wrapped stETH (WSTETH) $ 4,059.37 2.24%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 98,182.31 0.05%
polkadot
Polkadot (DOT) $ 9.16 22.74%
chainlink
Chainlink (LINK) $ 17.84 6.37%
bitcoin-cash
Bitcoin Cash (BCH) $ 514.31 4.37%
weth
WETH (WETH) $ 3,425.16 2.25%
sui
Sui (SUI) $ 3.46 3.38%
pepe
Pepe (PEPE) $ 0.000021 2.87%
leo-token
LEO Token (LEO) $ 8.66 1.02%
near
NEAR Protocol (NEAR) $ 6.49 4.36%
litecoin
Litecoin (LTC) $ 101.41 2.35%
aptos
Aptos (APT) $ 13.02 2.06%
uniswap
Uniswap (UNI) $ 11.04 8.06%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,609.08 2.35%
hedera-hashgraph
Hedera (HBAR) $ 0.150903 0.97%
internet-computer
Internet Computer (ICP) $ 11.78 7.97%
crypto-com-chain
Cronos (CRO) $ 0.199331 6.34%
usds
USDS (USDS) $ 1.00 0.41%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.584942 12.57%
ethereum-classic
Ethereum Classic (ETC) $ 30.22 3.65%
render-token
Render (RENDER) $ 7.97 2.63%
bittensor
Bittensor (TAO) $ 539.68 4.49%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.52 16.00%
kaspa
Kaspa (KAS) $ 0.154041 1.13%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.07%
arbitrum
Arbitrum (ARB) $ 0.888577 9.74%
bonk
Bonk (BONK) $ 0.000048 5.64%
cosmos
Cosmos Hub (ATOM) $ 9.17 19.20%
whitebit
WhiteBIT Coin (WBT) $ 24.74 0.48%
filecoin
Filecoin (FIL) $ 5.91 19.51%
vechain
VeChain (VET) $ 0.043319 7.76%
dai
Dai (DAI) $ 1.00 0.01%
mantra-dao
MANTRA (OM) $ 3.73 2.27%
dogwifcoin
dogwifhat (WIF) $ 3.34 0.29%
okb
OKB (OKB) $ 54.74 10.55%