BlackRock Inc. Earnings Cheat Sheet: Profitable Quarter Accelerates Growth

BlackRock Inc. (NYSE:BLK) reported its results 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 Earnings Cheat Sheet for the Third Quarter

Results: Net income for BlackRock Inc. rose to $595 million ($3.23 per share) vs. $551 million ($2.83 per share) in the same quarter a year earlier. This marks a rise of 8% from the year earlier quarter.

Revenue: Revenue rose 6% to $2.23 billion from the year earlier.

Actual vs. Wall St. Expectations: BLK reported adjusted net income of $2.83 per share. By that measure, the company beat the mean estimate of $2.74 per share.

Quoting Management: “In a quarter marked by heightened economic uncertainty and declining markets, BlackRock’s broadly diversified, global platform delivered strong financial results – with revenue growth of 6% year-over-year and 15% growth in as adjusted operating income,” said Laurence D. Fink, Chairman and CEO of BlackRock. “Our ability to achieve an as adjusted operating margin of 40%, even in the current challenging environment, reflected both strong expense discipline and the benefits of product breadth across active and passive strategies. Our business continues to produce strong free cash flow and we remain committed to returning cash to shareholders.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 43.3% and in the first quarter, the figure rose 34.3%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 8 cents in the second quarter, by 21 cents in the first quarter, and by 52 cents in the fourth quarter of the last fiscal year.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from $3.78 per share to $3.31, indicating that analysts are growing pessisimistic about the company’s performance next quarter. For the fiscal year, the average estimate has moved down from $12.86 a share to $11.99 over the last ninety days.

Competitors to Watch: Morgan Stanley (NYSE:MS), T. Rowe Price Group, Inc. (NASDAQ:TROW), American Intl. Group, Inc. (NYSE:AIG), Barclays PLC (NYSE:BCS), Bank of America Corp. (NYSE:BAC), Citigroup (NYSE:C), JP Morgan (NYSE:JPM), Goldman Sachs Group, Inc. (NYSE:GS), Invesco Ltd. (NYSE:IVZ), UBS AG (NYSE:UBS), Affiliated Managers Group, Inc. (NYSE:AMG), and Franklin Resources, Inc. (NYSE:BEN).

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(Source: Xignite Financials)