S&P 500 (NYSE:SPY) component BlackRock (NYSE:BLK) will unveil its latest earnings on Wednesday, October 17, 2012. BlackRock, along with its subsidiaries, provides investment management services to institutional clients and to individual investors through various investment vehicles.
BlackRock Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average analyst estimate is for profit of $3.28 per share, a rise of 15.9% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $3.29. Between one and three months ago, the average estimate moved down. It has risen from $3.22 during the last month. Analysts are projecting profit to rise by 6.3% versus last year to $13.16.
Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting net income of $3.10 per share against a mean estimate of profit of $3.03 per share.
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A Look Back: In the second quarter, profit fell 10.5% to $554 million ($3.08 a share) from $619 million ($3.21 a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.4% to $2.23 billion from $2.36 billion.
Stock Price Performance: Between July 18, 2012 and October 11, 2012, the stock price rose $10.74 (6.1%), from $175.05 to $185.79. The stock price saw one of its best stretches over the last year between October 2, 2012 and October 9, 2012, when shares rose for six straight days, increasing 6.7% (+$11.82) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 8.8% (-$14.61) over that span.
Analyst Ratings: With 10 analysts rating the stock a buy, one rating it a sell and six rating the stock a hold, there are indications of a bullish stance by analysts.
On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 2.1% in the third quarter of the last fiscal year, 10.4% in fourth quarter of the last fiscal year and 0.6% in the first quarter and then fell again in the second quarter.
The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 0.7% in the first quarter before dropping in the second quarter.
Wall St. Revenue Expectations: On average, analysts predict $2.26 billion in revenue this quarter, a rise of 1.8% from the year-ago quarter. Analysts are forecasting total revenue of $9.2 billion for the year, a rise of 1.3% from last year’s revenue of $9.08 billion.
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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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