Shares of BlackRock fall despite 3Q earnings beat due to $3.11 billion in net outflows

BlackRock CEO Laurence Fink said the assset manager was hit by 'de-risking' associated with ongoing divergent monetary policy and geopolitical uncertainty

A glass panel with the BlackRock company name written on it
BlackRock had $6.44 trillion worth of assets under management in the quarter

Shares of BlackRock Inc (NYSE:BLK), the world’s largest asset manager, tumbled Tuesday in premarket trade after it posted a stronger profit in the third quarter, but reported more than $3 billion in net outflows.

Investors took $17.26 billion out of BlackRock equity products. According to The Wall Street Journal the asset manager reported $3.11 billion in net outflows for the quarter, compared with the $96.11 billion in net inflows it had for the comparable quarter a year ago.

BlackRock stock fell 3.2% to $413.50.

READ: Goldman Sachs, Morgan Stanley ride deals to score big 3Q earnings beats

Institutional investors pulled out $30.85 billion from non-ETF index funds, which BlackRock Chief Executive Laurence Fink attributed to “de-risking associated with ongoing divergent monetary policy and geopolitical uncertainty.”

“We’re seeing more and more clients just pausing,” Fink said in an interview, “and trying to get their long-term views recalibrated.”

For the quarter ended September 2018, the asset manager posted earnings of $7.52 per share on revenue of $3.6 billion. The consensus earnings estimate was $6.93 per share on revenue of $3.7 billion so revenue fell below what analysts were anticipating. 

Contact Uttara Choudhury at [email protected]

Follow her on Twitter@UttaraProactive 

Quick facts: BlackRock

Price: 556.53 USD

Market: NYSE
Market Cap: $84.38 billion

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