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BlackRock earnings miss, revenue beats estimates

BlackRock on Friday reported quarterly profit that was weaker than analysts expected, due to higher compensation costs.

"The miss is all a one-time expense from some of the deals we did and compensation related to some of the deals we did," BlackRock Chief Executive Officer Larry Fink told CNBC.

BlackRock's purchases last year included FutureAdvisor, which builds a digital financial-advice product, and Infraestructura Institucional, a Mexican infrastructure company.

On an adjusted basis, the world's largest asset manager earned $4.75 per share, falling short of the average analyst estimate of $4.80, according to Thomson Reuters I/B/E/S. Revenue of $2.86 billion was slight higher than forecasts.

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"One other thing that was a huge difference between our 2014 and 2015 year was our tax rate; our tax rate was up 5 points," Fink told "Squawk Box" Friday, blaming the strong dollar. "When you have a mix of business worldwide and your business is depreciated because of rising dollar your mix actually shifts more to the U.S. and your tax rate goes up."

Despite market volatility, the company continued to lure billions of dollars into its investment products, especially its iShares exchange-traded funds business. BlackRock ETFs took in $60.22 billion in new money in the latest quarter, up from $44.19 billion a year earlier.

The lion's share invested in ETFs went into equities, driven by demand for U.S. stocks.

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BlackRock experienced total long-term net flows of $53.87 billion in the three months ended Dec. 31, down from $87.82 billion in the same quarter of 2014.

Across all of its products, BlackRock attracted a net $53.47 billion in long-term equity investments. Net investment in fixed income was $158 million, while $464 million went into alternative investments.

BlackRock ended the quarter with $4.65 trillion in assets under management, virtually unchanged from a year earlier.

Shares of BlackRock, as of Thursday's close, have fallen about 9 percent since the start of the year. For all of 2015, the stock fell nearly 5 percent.

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— CNBC's Matthew J. Belvedere contributed to this report.