NEW YORK -- BlackRock Inc. said Wednesday that its third-quarter net income rose 7.9 percent, boosted by an influx of investor cash into its low-cost iShares exchange-traded funds.
The New York-based investment manager earned $642 million, or $3.65 per share, up from $595 million, or $3.23 per share. Excluding one-time items, the company posted an adjusted profit of $3.47 per share.
Revenue rose 4.3 percent to $2.32 billion from $2.23 billion.
The results easily beat Wall Street predictions. Analysts, on average, expected net income of $3.31 per share on $2.25 billion in revenue, according to FactSet.
The company's assets under management rose 10 percent from year-ago levels to $3.67 trillion. Its net inflows in long-term products totaled $31.3 billion, excluding the effect of a single, low-fee, institutional index fixed income outflow of $74.2 billion, which BlackRock said it declined to re-bid at extremely low fees.
Net inflows related to iShares totaled $25.2 billion, the most since BlackRock acquired the business in 2009.
Earlier this week, the company announced plans to reduce the investment fees charged at six of the unit's largest exchange-traded funds. BlackRock also said it would launch four new iShares ETFs and revamp some of its existing lineup with a goal of making ETFs more appealing to long-term, buy-and-hold investors.
BlackRock shares rose 45 cents to $190.42 in morning trading.