BlackRock Earnings: Here’s Why the Stock is Up Now

BlackRock, Inc. (NYSE:BLK) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 0.6%.

BlackRock, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 33.87% to $4.15 in the quarter versus EPS of $3.10 in the year-earlier quarter.

Revenue: Rose 11.15% to $2.48 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: BlackRock, Inc. reported adjusted EPS income of $4.15 per share. By that measure, the company beat the mean analyst estimate of $3.82. It missed the average revenue estimate of $2.49 billion.

Quoting Management: “Our second quarter results, which reflect adjusted operating income up 18% year-over-year, once again highlight the strength of our globally diversified multi-client platform that was built to deliver in all market environments,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “During the quarter we generated record base fees and $11.9 billion in long-dated net new business across a broad range of products, including 11 funds that each raised more than $1 billion. These funds showcased the diversity of our offering, with representation across all major asset classes, client segments and geographies. Results were driven by global demand from retail and institutional clients for multi-asset class, unconstrained fixed income and retail alternative products. Our strong product capabilities in the retail alternative mutual fund space, coupled with our broad distribution platform, uniquely position us in this high growth segment, where second quarter net flows of $1.1 billion drove sequential quarter AUM growth of 72%.”

Key Stats (on next page)…

Revenue decreased 2.21% from $2.54 billion in the previous quarter. EPS increased 13.7% from $3.65 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $4.02 to a profit $3.92. For the current year, the average estimate has moved down from a profit of $15.97 to a profit of $15.74 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)