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BlackRock (BLK ) Tops Q2 EPS by 15c

July 15, 2015 6:02 AM EDT

BlackRock (NYSE: BLK) reported Q2 EPS of $4.96, versus analyst estimate of $4.81. Revenue for the quarter came in at $2.91 billion versus the consensus estimate of $2.86 billion.

AUM was $4.72 billion, from $4.59 billion in the same period last year.

“Although continued market volatility impacted asset flows in the second quarter, BlackRock's diversified business model drove strong financial results, with revenue up 5% and operating income up 10% year-over-year,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “BlackRock’s unique combination of active and index investment offerings, across all asset classes on a single platform, enables us to provide solutions for our clients’ evolving needs. Despite the impact of more than $30 billion of low-fee institutional index outflows, net inflows into higher-fee active and iShares products drove robust organic base fee growth for the quarter.

“Year-to-date, a desire to reallocate and/or address cash needs drove ten of our largest clients to redeem over $40 billion of institutional index equity assets. However, those same clients reinvested across BlackRock’s active equity and fixed income, multi-asset and alternatives strategies, resulting in a positive net revenue impact for the firm. This demonstrates the value of the deep, strategic relationships we maintain with our clients and validates the strength of our solutions-oriented business model.

“In the face of a challenging quarter for industry flows in US active mutual funds, the strength of BlackRock’s franchise positioned us to garner US retail net inflows of $7 billion – growing our domestic market share and achieving a "top-5" ranking in US retail mutual fund industry flows. Internationally, BlackRock saw more than $3 billion of net inflows and maintained its #1 position in cross-border mutual fund flows year-to-date, driven by strength in European and Asian equities.

“Executing on our plan to reinvigorate the performance of our fundamental active equity platform remains critical to our success and, while we still have work to do, we are pleased that 78% and 61% of fundamental active equity assets performed above benchmark or peer median for the one- and three-year periods ended June 30, 2015. Long-term performance in active fixed income and scientific active equities remains strong, with 89% and 95% of assets above benchmark or peer median for the three-year period, respectively.

“BlackRock’s global platform and unique product offering across investment styles and asset classes – combined with our Aladdin technology platform – enable us to deliver solutions for our clients, no matter their near- or long-term goals. This differentiated business model allowed us to produce strong financial performance in the second quarter and positions us well for stable growth in the future. I would like to thank our employees for their ongoing commitment to superior investment performance and client service as we work to create better financial futures for our clients and drive long-term value for our shareholders.”

For earnings history and earnings-related data on BlackRock (BLK ) click here.



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