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Tale of the Tape

Zacks Equity Research

BlackRock (BLK) Tops Q3 Earnings on Lower Expenses
October 18, 2016

BLK

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Have you been eager to see how BlackRock, Inc. (BLK - Free Report) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based investment management company’s earnings release this morning:

An Earnings Beat

BlackRock came out with adjusted earnings per share of $5.14, beating the Zacks Consensus Estimate of $5.05.

Better-than-expected results were driven by lower expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for BlackRock depicted optimism prior to the earnings release. The Zacks Consensus Estimate has moved 0.8% higher over the last 30 days.

Before posting an earnings beat in Q3, the company delivered negative surprises in three of the prior four quarters.

BLACKROCK INC Price and EPS Surprise

BLACKROCK INC Price and EPS Surprise | BLACKROCK INC Quote

Nonetheless, the company overall surpassed the Zacks Consensus Estimate by an average of 2.07% in the trailing four quarters.

Revenue Came In Lower Than Expected

BlackRock posted revenues of $2.84 billion, which compared unfavorably with the Zacks Consensus Estimate of $2.90 billion and the year-ago quarter figure of $2.91 billion.

Key Developments to Note:

•    Assets under management of $5.1 trillion as of Sep 30, 2016, up 14% year over year.
 
•    $55 billion of long-term net inflows in the quarter.
 
•    During the quarter, iShares saw $51.3 billion of long-term net inflows, resulting mainly from equity net inflows.

•    Quarterly share repurchases worth $275 million was carried out.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for BlackRock. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here)

Check back later for our full write up on this BlackRock earnings report!

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