BlackRock reported third-quarter earnings that exceeded expectations on Friday, leading to a sharp rise after initially declining post-report. With the ticker BLK, the world’s largest money manager posted earnings per share of $10.91 for the third quarter, surpassing the $8.34 anticipated by Wall Street analysts and marking an improvement from $9.55 in the same period the previous year. BlackRock noted a 7% increase in operating income compared to last year.
In premarket trading, the stock increased by 0.8% to $641.20, although it has seen a 10% decline since the beginning of the year.
BlackRock has been navigating a dynamic investment landscape, with the Federal Reserve aggressively raising interest rates over the past 18 months. Despite a relatively flat performance in the stock market this year and a significant rise in bond yields, BlackRock attracted $3 billion in net inflows for the quarter.
Net outflows of $49 billion were reported, primarily from lower-fee index equity strategies and a withdrawal of $19 billion from a single international client. However, assets under management increased by $1.1 trillion compared to the previous year.
CEO Larry Fink highlighted the firm’s ability to guide investors through market changes, emphasizing that investors turned to BlackRock when ready to reinvest. Fink stated, “We remain intensely focused on staying in front of our clients, positioning for a resurgence in allocation activity as rates stabilize, and laying the foundation for future growth.”