By Michael Calia
BlackRock Inc. said its earnings fell 3.5% in the most recent
quarter, although assets under management rose as the firm posted
positive inflows.
BlackRock also raised its dividend to $2.18 a share from $1.93,
while boosting its share-buyback program by 6 million shares under
its existing plan for a total of as many as 9.4 million shares.
Earnings topped analysts' expectations while revenue fell short.
Shares of the firm were inactive premarket.
BlackRock--which is the largest asset manager in the world--was
expected to show that it has gained inflows as investors pull money
from Pacific Investment Management Co., whose clients have been
pulling money at a steady clip since Bill Gross left the firm in
September to join Janus Capital Group Inc.
Assets under management rose about 8% to $4.65 trillion from a
year ago and about 3% from $4.52 trillion at the end of the
previous quarter.
The company's iShares exchange-traded-fund business had net
inflows of $44.2 billion, more than half coming from equity. Total
long-term net inflows were $87.8 billion, and retail inflows were
$23 billion.
For the quarter ended Dec. 31, the firm reported earnings of
$821 million, or $4.77 a share, down from $851 million, or $4.86 a
share, a year ago. Excluding certain items, earnings fell to $4.82
a share from $4.92.
Revenue rose slightly to $2.78 billion.
Analysts polled by Thomson Reuters had estimated $4.67 a share
in earnings and $2.87 billion in revenue.
Write to Michael Calia at michael.calia@wsj.com
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