BlackRock’s stock set to rally after big profit beat, revenue rises above forecasts

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Shares of BlackRock Inc. were indicated up nearly 2% in premarket trading Tuesday, after the investment management company reported a third-quarter profit that was well above expectations and revenue that rose above forecasts. Net income rose to $1.36 billion, or $8.87 a share, from $1.12 billion, or $7.15 a share, in the year-ago period. Excluding non-recurring items, adjusted earnings per share rose to $9.22 from $7.15, above the FactSet consensus of $7.77. Revenue grew 18% to $4.37 billion, topping the FactSet total revenue consensus of $3.94 billion. Total new inflows were $129 billion, led by growth in fixed income and cash management. “Each of our strategic investment areas, including iShares ETFs, alternatives and technology, continue to grow, while strong investment performance has driven positive active flows over the last year,” said Chief Executive Larry Fink. The stock has rallied 22.3% year to date through Monday, while the S&P 500 has gained 9.4%.
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