BlackRock announced its assets under management peaked at a remarkable $12.5 trillion in the second quarter, setting a record. However, the company's shares took a hit on Tuesday after revenues fell short of estimates. Though the company's revenue saw a 13% year-over-year growth to $5.42 billion, it failed to meet the $5.44 billion expectation put forth by analysts surveyed by Visible Alpha. The adjusted earnings per share came out at $12.05, outpacing expectations.
BlackRock disclosed that the shortfall in revenue was partly because of reduced net inflows, owing to the withdrawal of $52 billion from index funds, linked to a “partial redemption" implemented by a single institutional client.
BlackRock also disclosed that it has completed its acquisition of HPS Investment Partners for $12 billion on July 1. The acquisition has brought in an additional $165 billion of client assets under management and $118 billion of fee-paying assets under management.
So far, BlackRock stocks have increased by around 3% this year, despite the recent drop in share prices, which fell by nearly 6% in recent trading after achieving an all-time high the previous day.