BlackRock climbs after second-quarter earnings beat forecasts and assets reach record levels (BLK)
BlackRock (NYSE:BLK) shares moved higher in premarket trading on Wednesday after the world's largest asset manager reported stronger-than-expected second-quarter results, supported by record client inflows and continued growth across its investment platform.
Earnings and revenue exceed expectations
BlackRock reported second-quarter earnings per share of 13.91 dollars, comfortably ahead of analysts' expectations of 12.57 dollars.
Revenue increased to 7.08 billion dollars, surpassing the consensus forecast of 6.72 billion dollars and representing year-on-year growth of 31 percent.
The company attributed the increase to favourable market conditions, organic growth in base fees, contributions from its HPS acquisition, higher performance fees and stronger technology services and subscription revenue.
More crap at :
https://finance.yahoo.com/markets/stocks/articles/blackrock-climbs-second-quarter-earnings-111216428.html
And how do they “make” all this money?
Lawsuit accuses BlackRock of overcharging mutual fund investors
NEW YORK, July 13 (Reuters) - BlackRock (BLK.N), opens new tab, one of the world's largest asset managers, was sued on Monday by investors who said it stuck them with higher management fees and tax bills by using improper accounting that inflated the values of more than 70 equity mutual funds.
According to a complaint filed in a New York state court in Manhattan, BlackRock misclassified dividend income and realized capital gains as fund assets, despite having to distribute these sums to investors within the tax year.
Investors said the inflated NAVs caused them to buy fewer shares than they were entitled to, and pay management fees and higher taxes on what were essentially fund liabilities.
BlackRock did not immediately respond to requests for comment.
The New York-based company ended March with $13.89 trillion of assets under management, including $7.66 trillion in equities.
BlackRock has said more than half of the assets it manages are in retirement accounts, whose tax consequences differ from those of non-retirement accounts.
According to the complaint, BlackRock's conduct wasn't excused because the company warned investors, as do many fund managers, they may incur tax liabilities by purchasing shares shortly before dividends are distributed.
"The 'Buying a Dividend' disclosure conceals the far broader and more damaging reality: that the NAV of the respective BlackRock Funds are artificially inflated by accrued income and gains every day," the complaint said.
Investors accused BlackRock of violating the Securities Act of 1933, which regulates the offering and sale of securities.
More charges at link….