Market Overview

BlackRock's Q2 Earnings Miss Estimates, Revenues Rise


Have you been eager to see how BlackRock, Inc. BLK performed in Q2 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 Miss

BlackRock came out with adjusted earnings per share of $5.24, beating the Zacks Consensus Estimate of $5.39.

Lower-than-expected earnings were primarily due to higher 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 nearly 1% higher over the last 7 days.

Before posting earnings miss in Q2, the company delivered positive surprises in three of the trailing four quarters.

BlackRock, Inc. Price and EPS Surprise


BlackRock, Inc. Price and EPS Surprise | BlackRock, Inc. Quote

As a result, the company overall surpassed the Zacks Consensus Estimate by an average of 2.56% in the trailing four quarters.

Revenue Came In Line

BlackRock posted revenues of $2.97 billion, in line with the Zacks Consensus Estimate. The reported figure was up from 5% from the year-ago quarter.

Key Developments to Note:

  • Technology and risk management revenue recorded 12% year-over-year rise
  • Assets under management of $5.7 trillion as of Jun 30, 2017, up 14% year over year
  • Long-term inflows of $93.5 billion in the quarter
  • Share repurchase worth $275 million during the quarter

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. While things apparently look unfavorable, 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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The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Earnings News Trading Ideas


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