BlackRock sees profits rise but revenue misses

US asset manager BlackRock reported a 3.8% rise in profits on Tuesday before the opening bell.

Third quarter earnings for the company were $5.14 per share, which was ahead of $5 estimates from analysts, even though revenues of $2.84bn were just below the $2.88bn consensus.

Net profit increased to $875m from $843 a year earlier, on the back of the company's efforts to cut costs in order to boost profitability.

Chief executive officer Larry Fink said the business' diversity was one of the fundamental factors for the increase in profits.

"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," 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 added.

Asset managers have faced difficulties in recent times due to regulatory issues, including a new Labor Department rule which states they must put the interests of their clients first.

"Regulatory change continues to have a material impact on our industry," Fink said. "In retail, the DOL fiduciary rule will increasingly influence the choices that financial intermediaries make for their clients."