BlackRock Inc. reported a second-quarter profit and revenue that rose above expectations, boosted by increased fees and a lower tax rate. The stock was little changed in light premarket trade. The asset management company said net income rose to $1.08 billion, or $6.62 a share, from $864 million, or $5.20 a share, in the same period a year ago. Excluding non-recurring items, adjusted earnings per share came to $6.66, above the FactSet consensus of $6.55. Total revenue grew to $3.61 billion from $3.24 billion, topping the FactSet consensus of $3.58 billion, as investment advisory, administration fees and securities lending revenue increased to $2.94 billion from $2.67 billion. The effective tax rate declined to 24.0% from 30.5%. “Despite an industry-wide slowdown in flows associated with investor uncertainty in the current market environment, our dialogue with clients and opportunities to provide long-term solutions are more robust than ever before,” said Chief Executive Laurence Fink. The stock slipped 1.3% year to date through Friday, while the S&P 500 gained 4.8%.
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