BlackRock BLK will be releasing its next round of earnings this Wednesday, July 14. For all of the relevant information, here is your guide for Wednesday's Q2 earnings announcement.
What Are Earnings, Net Income, And Earnings Per Share?
Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.
Earnings And Revenue
BlackRock EPS will likely be near $9.36 while revenue will be around $4.61 billion, according to analysts. In the same quarter last year, BlackRock reported earnings per share of $7.85 on sales of $3.65 billion.
Why Analyst Estimates And Earnings Surprises Are Important
Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.
The Wall Street estimate would represent a 19.24% increase in the company's earnings. Revenue would be up 26.37% on a year-over-year basis. Here is how the BlackRock's reported EPS has stacked up against analyst estimates in the past:
| Quarter | Q1 2021 | Q4 2020 | Q3 2020 | Q2 2020 |
|---|---|---|---|---|
| EPS Estimate | 7.64 | 9.14 | 7.77 | 6.97 |
| EPS Actual | 7.77 | 10.18 | 9.22 | 7.85 |
| Revenue Estimate | 4.30 B | 4.30 B | 3.93 B | 3.46 B |
| Revenue Actual | 4.40 B | 4.48 B | 4.37 B | 3.65 B |
Stock Performance
Shares of BlackRock were trading at $915.92 as of July 12. Over the last 52-week period, shares are up 60.47%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.
Do not be surprised to see the stock move on comments made during its conference call. BlackRock is scheduled to hold the call at 08:30:00 ET and can be accessed here.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
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