BlackRock Finance Exceeds Q3 Earnings and Revenue Projections

BlackRock Finance recently announced its quarterly earnings, revealing a remarkable figure of $11.46 per share. This performance surpassed the Zacks Consensus Estimate of $10.42 per share, showcasing a year-over-year increase from $10.91 per share, adjusted for non-recurring items.

This quarterly performance translates to an earnings surprise of 9.98%. In the preceding quarter, analysts anticipated earnings of $9.96 per share, but BlackRock Finance exceeded expectations with earnings of $10.36, resulting in a surprise of 4.02%.

Over the past four quarters, the company has consistently outperformed consensus earnings per share (EPS) estimates.

In terms of revenue, BlackRock Finance reported $5.2 billion for the quarter ending September 2024, also surpassing the Zacks Consensus Estimate by 3.93%. This figure marks a substantial increase from last year’s revenues of $4.52 billion, and the company has exceeded consensus revenue projections three times in the last year.

The long-term impact of these latest earnings figures on the stock price will largely depend on insights provided by management during the upcoming earnings call.

Since the year began, shares of BlackRock Finance have increased approximately 17.7%, although this is slightly below the S&P 500's growth of 21.2%.

Future Outlook for BlackRock Finance

With BlackRock Finance trailing the market performance so far this year, investors are keen to understand the future trajectory of the stock.

While definitive answers are elusive, one helpful approach for investors is to examine the company’s earnings outlook. This outlook not only covers current consensus earnings expectations for the forthcoming quarter(s) but also tracks any recent changes in these expectations.

Research indicates a strong correlation between short-term stock movements and trends in earnings estimate revisions. Investors can keep an eye on these revisions personally or utilize the Zacks Rank, which has a proven history of effectively leveraging earnings estimate revisions.

Before this latest earnings announcement, the trend of estimate revisions for BlackRock Finance appeared mixed. Although earnings estimate revisions might shift following the recent report, the current assessment results in a Zacks Rank of #3 (Hold), suggesting that shares are likely to perform similarly to the market in the near term.

Investors should monitor any alterations in estimates for upcoming quarters and the current fiscal year. The present consensus EPS estimate stands at $11.14, based on anticipated revenues of $5.56 billion for the upcoming quarter and $41.83 in EPS projections based on $20.1 billion in revenues for the present fiscal year.

Additionally, it is crucial for investors to recognize that broader industry trends can significantly affect stock performance. Currently, the Zacks Industry Rank for Financial - Investment Management places it in the top 41% of over 250 Zacks industries. Historical data suggests that the leading 50% of Zacks-rated industries outperform the lower 50% by a factor of over 2 to 1.

Another notable company within the same sector is SEI Investments (NASDAQ: SEIC), which is yet to release its financial results for the quarter ending September 2024.

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

The company’s anticipated revenues are expected to reach $532.11 million, which would represent an 11.6% increase compared to the same quarter last year.

Earnings, Finance, Stocks