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BlackRock (BLK) Tops Q4 Earnings on Higher Revenues

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Have you been eager to see how BlackRock, Inc. (BLK - Free Report) performed in Q4 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 $5.04.

Better-than-expected results were driven by higher revenues along with lower expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for BlackRock depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved 1.4% lower over the last 7 days.

Before posting earnings beat in Q4, the company delivered negative surprises in three of the prior four quarters.

BlackRock, Inc. Price and EPS Surprise
 

As a result, the company overall lagged the Zacks Consensus Estimate by an average of -0.2% in the trailing four quarters.

Revenue Came In Lower Than Expected

BlackRock posted revenues of $2.89 billion, up from $2.86 billion in the year-ago quarter. However, the reported figure compared unfavorably with the Zacks Consensus Estimate of $2.94 billion.

Key Developments to Note:

  • Assets under management of $5.1 trillion as of Dec 31, 2016, up 11% year over year.
     
  • $87.8 billion of long-term net inflows in the quarter.
     
  • During the quarter, iShares saw $49.3 billion of long-term net inflows, resulting mainly from equity net inflows.
     
  • Share repurchase worth $2.7 billion was carried out in 2016.
     
  • The company authorized 9% hike in quarterly dividend to $2.50 per share along with additional 6 million of share repurchases.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) 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 #1 Rank (Strong Buy) stocks here)

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

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