Earnings Preview: BlackRock's EPS, Revenue Expected to Rise
BlackRock (NYSE: BLK) announces its next round of earnings this Wednesday, October 19, 2011. Here's Benzinga's essential guide to BlackRock's third quarter earnings report.
Earnings and Revenue:
Analysts are predicting an EPS reading of $2.83/share and revenues of $2.33 billion. BlackRock's latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a profit of $2.75/share on revenues of $2.09 billion. We'll know on Wednesday whether BlackRock has managed the estimated 2.9% increase in EPS and 11.5% rise in revenues on a year-over-year basis.
Here's how the company's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q2 | Q1 | Q4 | Q3 |
| EPS Estimate | $2.92 | $2.75 | $2.90 | $2.45 |
| EPS Actual | $3.00 | $2.96 | $3.42 | $2.75 |
Stock Performance:
As of October 13, 2011, BlackRock's current share price was $153.65. Shares are down 17.6% year to date. For a full 12 months, the return has declined by 11.1%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.
- Long-term shareholders are already wary of 12-month losses prior to the announcement
Average Stock Rating:
The average rating by analysts for BlackRock is a Moderate Buy. This rating has strengthened slightly over the past ninety days.
Competitors:
Looking for a sympathy stock to trade or interested in the performance of other companies in the same sector? Take a look at some of BlackRock's peers.
- American International Group (NYSE: AIG): Hold with a $0.72 recent quarter EPS
- Affiliated Managers Group (NYSE: AMG): Moderate Buy with a $1.71 recent quarter EPS
- Bank of America (NYSE: BAC): Hold with a -$0.90 recent quarter EPS
- Barclays PLC (ADR (NYSE: BCS): Moderate Buy with a $0.60 recent quarter EPS
The finance-investment management company's industry has seen price/earnings growth of 1% during the current fiscal year.
Finally, a description of the company's main areas of operation: BlackRock, along with its subsidiaries, provides investment management services to institutional clients and to individual investors through various investment vehicles.
Take Action:
Now that you have reviewed all the numbers, be ready to move if the upcoming BlackRock earnings report has any surprises. Also, come back to Benzinga after the announcement for a full recap and a guide to your next steps.
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