BlackRock Finance Exceeds Q3 Earnings and Revenue Expectations

BlackRock Finance reported quarterly earnings of $11.46 per share, surpassing the Zacks Consensus Estimate of $10.42 per share. This marks an increase from the $10.91 per share earned during the same period last year, with all figures adjusted for non-recurring items.

The quarterly earnings represent a significant surprise of 9.98%. In the previous quarter, analysts anticipated earnings of $9.96 per share, but BlackRock delivered $10.36 instead, achieving a surprise of 4.02%.

For the last four quarters, BlackRock Finance has consistently outperformed consensus EPS estimates.

This leading investment firm, classified within the Zacks Financial - Investment Management sector, reported revenues of $5.2 billion for the quarter ending September 2024. This figure is 3.93% higher than the Zacks Consensus Estimate and represents a rise from the $4.52 billion in revenue recorded in the same quarter of the previous year. BlackRock has exceeded consensus revenue estimates in three of the last four quarters.

Looking ahead, the sustainability of the stock's price movement following these results will largely depend on management's insights during the earnings call.

Since the beginning of the year, BlackRock Finance shares have increased approximately 17.7%, while the S&P 500 index has gained 21.2%.

Future Prospects for BlackRock Finance

Despite underperforming the market thus far in 2024, investors are keen to know what lies ahead for the stock.

While there is no straightforward answer to this question, the company's earnings outlook is a valuable indicator for investors. This outlook includes current consensus earnings projections for upcoming quarters and any recent changes to these estimates.

Research has shown a strong link between short-term stock performance and the trends in earnings estimate revisions. Investors can monitor these revisions themselves or utilize a tool like the Zacks Rank, which has an impressive history of forecasting stock performance based on earnings expectations.

Before this earnings announcement, the trend in estimate revisions for BlackRock Finance was mixed. Following the release of the latest earnings, the magnitude and direction of these revisions may change. Currently, the stock is rated as Zacks Rank #3 (Hold), suggesting it is likely to perform in line with the market in the near future.

It will be important to observe how estimates for upcoming quarters and the current fiscal year evolve in the near future. The current consensus EPS estimate is $11.14 for the next quarter, with anticipated revenues of $5.56 billion, and $41.83 EPS on $20.1 billion in revenues for the entire fiscal year.

Investors should consider that the overall outlook for the investment management industry can significantly influence stock performance. At present, the Zacks Industry Rank places Financial - Investment Management in the top 41% of over 250 industries. Historical data shows that industries in the top 50% tend to outperform those in the bottom 50% by a factor of more than 2 to 1.

Another company in the same sector, SEI Investments (NASDAQ: SEIC), has not yet reported its results for the quarter ending September 2024.

SEI Investments is projected to report quarterly earnings of $1.07 per share, indicating a year-over-year increase of 23%. Over the past 30 days, the consensus EPS estimate has been adjusted 2% higher.

Expected revenues for SEI Investments are $532.11 million, reflecting an 11.6% rise compared to the same quarter last year.

Finance, Earnings, Investments