Armed with its first full period of earnings since buying Barclays Global Investors, BlackRock Inc. announced its profits quintupled in the first quarter.
On the strength of the $13.5 billion acquisition, BlackRock reported Monday a profit of $423 million, or $2.17 per share, up from $84 million, or 62 cents per share, a year earlier. Excluding certain items, earnings rose to $2.40 from 81 cents. Revenue more than doubled to $2 billion.
The results missed analyst expectations though. According to Thomson Reuters, analysts expected earnings of $2.45 per share on revenue on $2.2 billion.
BlackRock has "experienced some significant merger-related outflows in the quarter," Laurence D. Fink, its chairman and chief executive officer, said in a press release. He added that "dissynergies" are running below expectations and new business flows remained strong.
As a result of the acquisition, assets under management increased 158.5% to $3.36 trillion from a year earlier.
BlackRock reported a strong first quarter from fixed-income index funds, which attracted $13.6 billion in net new assets. That included $7.1 billion from Barclays’ iShares funds, the company’s exchange-traded fund business, which was the crown jewel of the Barclays deal.
