BlackRock Finance Exceeds Q3 Earnings and Revenue Projections

BlackRock Finance has announced impressive quarterly earnings of $11.46 per share, significantly exceeding the Zacks Consensus Estimate of $10.42 per share. This figure is an improvement compared to the $10.91 earnings per share reported a year ago, and all earnings are adjusted for non-recurring items.

This quarterly performance represented an earnings surprise of 9.98%. In the previous quarter, analysts anticipated that BlackRock would post earnings of $9.96 per share, but the firm actually delivered $10.36, resulting in a surprise of 4.02%.

Across the last four quarters, BlackRock Finance has consistently surpassed consensus EPS estimates, achieving better-than-expected results each time.

In addition to earnings, the company reported revenues of $5.2 billion for the quarter ending September 2024, which was 3.93% higher than the Zacks Consensus Estimate. This is also a notable increase from last year’s revenues of $4.52 billion. BlackRock has exceeded consensus revenue estimates in three of the past four quarters.

The market's immediate reaction to these recently announced numbers and future earnings projections will largely hinge on comments made by management during the earnings call.

Since the start of the year, BlackRock Finance shares have risen by approximately 17.7%, while the S&P 500 has seen a gain of 21.2%. This underperformance raises questions among investors about the future trajectory of the stock.

Outlook for BlackRock Finance

With the stock's year-to-date performance trailing the market, investors are keen to determine the next steps for the company.

While there might not be straightforward answers, assessing the company’s earnings outlook is a valuable approach for investors. This encompasses current consensus earnings expectations for upcoming quarters and any recent changes to these expectations.

Research indicates a strong link between short-term stock movements and trends in earnings estimate revisions. Investors can monitor these revisions independently or utilize established rating tools like the Zacks Rank, known for its effectiveness in tracking earnings estimate changes.

Prior to this earnings release, the trend for estimate revisions regarding BlackRock Finance was somewhat mixed. Although these estimates may shift following the recent earnings announcement, the current ranking places the stock at Zacks Rank #3 (Hold), suggesting it is expected to perform in line with the broader market in the near future.

It will be interesting to observe how projections for the upcoming quarters and the current fiscal year evolve in the coming days. Currently, the consensus EPS estimate stands at $11.14, with expectations of $5.56 billion in revenues for the next quarter, and $41.83 on $20.1 billion in revenues for the current fiscal year.

Investors should remain aware that the overall industry outlook can significantly influence stock performance. Currently, the Zacks Industry Rank for Financial - Investment Management places it in the top 41% of over 250 Zacks industries. Historical data shows that industries ranked in the top 50% tend to outperform those in the bottom 50% by more than a two-to-one ratio.

Another company in the same sector, SEI Investments (SEIC), has yet to release its financial results for the quarter ending September 2024.

SEI is projected to report quarterly earnings of $1.07 per share, indicating a 23% increase from the previous year. In the past month, the consensus EPS estimate for SEI has been revised upward by 2%.

Revenue expectations for SEI Investments are set at $532.11 million, reflecting an 11.6% growth compared to the same quarter last year.

Earnings, Finance, Companies