Earnings Outlook For BlackRock

BlackRock BLK is gearing up to announce its quarterly earnings on Friday, 2024-10-11. Here's a quick overview of what investors should know before the release.

Analysts are estimating that BlackRock will report an earnings per share (EPS) of $10.23.

Anticipation surrounds BlackRock's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

During the last quarter, the company reported an EPS beat by $0.41, leading to a 2.55% increase in the share price on the subsequent day.

Here's a look at BlackRock's past performance and the resulting price change:

Tracking BlackRock's Stock Performance

Shares of BlackRock were trading at $955.92 as of October 09. Over the last 52-week period, shares are up 52.17%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analysts' Perspectives on BlackRock

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on BlackRock.

A total of 17 analyst ratings have been received for BlackRock, with the consensus rating being Outperform. The average one-year price target stands at $978.12, suggesting a potential 2.32% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of KKR, Brookfield and Ares Management, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for KKR, with an average 1-year price target of $140.65, indicating a potential 85.29% downside.
• Analysts currently favor an Outperform trajectory for Brookfield, with an average 1-year price target of $49.96, suggesting a potential 94.77% downside.
• Analysts currently favor an Neutral trajectory for Ares Management, with an average 1-year price target of $157.0, suggesting a potential 83.58% downside.

Key Findings: Peer Analysis Summary

The peer analysis summary provides a snapshot of key metrics for KKR, Brookfield and Ares Management, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

BlackRock ranks first in revenue growth among its peers. It also leads in gross profit. However, it ranks second in return on equity.

Unveiling the Story Behind BlackRock

BlackRock is the largest asset manager in the world, with $10.646 trillion in assets under management at the end of June 2024. Its product mix is fairly diverse, with 55% of managed assets in equity strategies, 26% in fixed income, 9% in multiasset classes, 7% in money market funds, and 3% in alternatives. Passive strategies account for around two thirds of long-term AUM, with the company's ETF platform maintaining a leading market share domestically and on a global basis. Product distribution is weighted more toward institutional clients, which by our calculations account for around 80% of AUM. BlackRock is geographically diverse, with clients in more than 100 countries and more than one third of managed assets coming from investors domiciled outside the US and Canada.

Understanding the Numbers: BlackRock's Finances

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

Positive Revenue Trend: Examining BlackRock's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.66% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 31.11%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 3.75%, the company may need to address challenges in generating satisfactory returns for shareholders.

Return on Assets (ROA): BlackRock's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 1.2%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: BlackRock's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 0.29.

To track all earnings releases for BlackRock visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.