Key Takeaways
- BlackRock said its assets under management reached a record $12.5 trillion in the second quarter, though its revenue missed estimates, sending shares lower Tuesday.
- The revenue miss was driven in part by lower net inflows, as a single institutional client withdrew $52 billion from index funds.
- BlackRock shares have added about 3% since the start of the year.
BlackRock (BLK) said its assets under management reached a record $12.5 trillion in the second quarter, though its revenue missed estimates, sending shares lower Tuesday.
BlackRock reported revenue rose 13% year-over-year to $5.42 billion, while analysts surveyed by Visible Alpha were looking for $5.44 billion. Adjusted earnings per share of $12.05 beat expectations.
The revenue miss was driven in part by lower net inflows, which BlackRock said reflected the impact of a single institutional client’s “partial redemption” withdrawing $52 billion from index funds.
BlackRock shares were down nearly 6% in recent trading, after hitting an all-time high yesterday.
BlackRock Closes $12B Acquisition of HPS Investment Partners
BlackRock added that it closed on its $12 billion purchase of HPS Investment Partners on July 1, which brought in $165 billion of client AUM and $118 billion of fee-paying AUM.
Shares of BlackRock have added about 3% since the start of the year.
