BlackRock, Inc. (NYSE: BLK) announced a 4 percent drop in profit for the second quarter hurt by a 3 percent fall in the top line. Its operating margin also slacked to drag down its profit. Its adjusted profit also dipped 5 percent, but came in above the Street expectations by a penny while revenue is in line with the estimations.
BlackRock said net income fell 4 percent to $789 million from $819 million while earnings fell two percent to $4.73 a share from $4.84 a share. On an adjusted basis, its net income dipped 5 percent to $797 million from $838 million whereas earnings skid 4 percent to $4.78 a share from $4.96 a share in the corresponding period last year. Street analysts estimated $4.77 a share.
The company's top line slipped 3 percent to $2.8 billion from $2.91 billion in the previous year quarter. This was in line with the analysts' predictions.
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BlackRock Chairman and CEO, Larry Fink, said, "Our clients are facing unprecedented challenges as they attempt to navigate the current investment environment. Political and macroeconomic uncertainty, historically low yields and elevated market volatility are leading clients to pause, as evidenced by more than $55 trillion in bank deposits in the US, China and Japan alone."
He continued, "This market environment is creating greater opportunities for BlackRock to engage with clients – leading to more frequent and substantive conversations than ever before. Clients are seeking advice, goal-oriented investment solutions and risk management and technological expertise. The differentiated platform we have purposely built at BlackRock is resonating with clients. Our combination of active, index and alternative investment capabilities, powered by Aladdin's industry-leading technology and risk management, positions us well to capture flows when client activity accelerates."
The company boosted its cash dividend to $2.29 a share from $2.18 a share in the year-ago quarter.
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