Earnings

BlackRock earnings: $5.14 a share vs. expected EPS of $5 a share

BlackRock's Fink: Active investing is not dead
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BlackRock's Fink: Active investing is not dead

BlackRock reported quarterly earnings that beat analysts' expectations on Tuesday, though revenue missed estimates.

The world's largest asset manager posted fiscal third quarter earnings of $5.14 a share on $2.84 billion in revenue.

Analysts expected the asset management giant to report earnings of about $5 a share on $2.88 billion in revenue, according to a consensus estimate from Thomson Reuters.

"In the third quarter, even as investor preferences continued to migrate from equity to fixed income and cash, and away from active strategies, the diversity of our platform drove nearly $70 billion of total net inflows," CEO Larry Fink said in a statement.

"Our $55 billion of long-term net inflows were positive across both active and index strategies, and positive across every asset class and region," he said.

BlackRock's iShares exchange-traded funds business took in $51.26 billion in new money, up from $23.3 billion a year earlier. The lion's share invested in ETFs went into stocks.

Fink said that regulatory change continues to have an material impact on the industry. He also said that its iShares "captured the [number] 1 market share of net new business" in the U.S. and elsewhere.

The company reported a 4 percent increase in base fees year-over-year. BlackRock ended the latest quarter with $5.12 trillion in assets undermanagement, up from $4.89 trillion in the second quarter ended June 30.

Earlier this month, BlackRock said it is cutting fees for 15 of its exchange-traded funds, helping it better compete with offerings by rivals like Vanguard and State Street. The asset manager is the biggest provider of ETFs in the world through its ownership of the iShares franchise.

BlackRock's stock is up 4.13 percent year to date.

— CNBC's Bob Pisani and Reuters contributed to this report.