Investment management firm BlackRock Inc (NYSE: BLK) reported second-quarter revenues that fell 2% year-over-year to $3.52 billion, hurt by lower securities lending revenue and performance fees. Analysts were, on an average, expecting $3.57 billion.

Performance fees decreased $27 million from the second quarter of 2018, primarily reflecting lower revenue from long-only equity products.

blackrock misses revenue and earnings estimate inQ2 2019

Meanwhile, technology services revenue grew 20%, partly helped by the eFront acquisition.

On an adjusted basis, net income fell 4% to $6.41 per share, which also missed the street consensus of $6.50 per share. The decline in bottom-line reflected lower operating incomes and higher taxes during the quarter.

The New York-based firm generated $151 billion of total net inflows in the second quarter, a record 9% annualized organic asset growth, driven by record fixed income and cash activity.

READ: Strong loan growth drives NII for US Bancorp in Q2

CEO Laurence Fink said, “While organic base fee growth of 3% and the year-over-year revenue decline reflected certain market headwinds, our second-quarter results validate BlackRock’s unique ability to bring together the entire firm to meet clients’ needs in any market environment.”

BLK shares ended its last trading session up 0.89% on Thursday. The stock has gained 22% so far this year.

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