BlackRock Earnings: Revenue Increase Snaps Four Straight Quarters of Decline, Profit Rises

BlackRock Inc. (NYSE:BLK) reported net income above Wall Street’s expectations for the third quarter. BlackRock, along with its subsidiaries, provides investment management services to institutional clients and to individual investors through various investment vehicles.

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BlackRock Inc. Earnings Cheat Sheet

Results: Net income for BlackRock Inc. rose to $642 million ($3.65 per share) vs. $595 million ($3.23 per share) in the same quarter a year earlier. This marks a rise of 7.9% from the year-earlier quarter.

Revenue: Rose 7.9% to $2.32 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: BlackRock Inc. beat the mean analyst estimate of $3.24 per share. It beat the average revenue estimate of $2.27 billion.

Quoting Management: “We’ve built a broad and diverse platform at BlackRock focused on delivering strong investment performance and the solutions our clients need regardless of market environment. In the third quarter, we delivered record earnings per share up 23% from the prior year and margins over 40%,” said Laurence D. Fink, Chairman and CEO of BlackRock. “We achieved these results through robust new business generation across each of our channels with particular strength in key growth areas on which we’ve focused, including Retail and iShares and our DC business, strong non-operating results and due to the benefits of share repurchases.”

Key Stats:

A year-over-year revenue increase last quarter snaps a streak of four consecutive quarters of revenue declines. The worst quarter in that span was the fourth quarter of the last fiscal year, which saw a 10.4% decrease.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 7 cents in the second quarter, by 13 cents in the first quarter, and by 6 cents in the fourth quarter of the last fiscal year.

Last quarter’s profit increase comes after net income dropped in the prevoius quarter. In the second quarter, net income declined 10.5% to $554 million.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $3.71 per share to $3.62, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $13.10 per share, the average estimate for the fiscal year has fallen from $13.37 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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