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BlackRock's Third Quarter Earnings Report
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BLK
BlackRock (NYSE:BLK) announced its results for the third quarter on October 17, 2012. BlackRock, along with its subsidiaries, provides investment management services to institutional clients and to individual investors through various investment vehicles.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
The Numbers: BlackRock's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported $3.65 per share versus the $3.24 per share estimate and revenues of $2.32 billion versus the $2.27 billion estimate. EPS rose 13% while revenue climbed 7.9% from the same period last year. BlackRock bounced back last quarter with a year-over-year revenue increase after four consecutive quarters of revenue declines. BlackRock reported net income of $642 million during the third quarter. According to the reported number, this is up 7.9% from last year's figures.
Management Quote: "We've built a broad and diverse platform at BlackRock focused on delivering strong investment performance and the solutions our clients need regardless of market environment. In the third quarter, we delivered record earnings per share up 23% from the prior year and margins over 40%," said Laurence D. Fink, Chairman and CEO of BlackRock. "We achieved these results through robust new business generation across each of our channels with particular strength in key growth areas on which we've focused, including Retail and iShares and our DC business, strong non-operating results and due to the benefits of share repurchases."
A Look Back: Net income has dropped 1.9% year-over-year on average across the last five quarters. Performance was hurt by a 15.5% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.
Looking Ahead: Over the past 90 days, the average estimate for the fourth quarter has fallen from $3.71 per share to $3.62, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $13.10 per share, down from $13.37 90 days ago.
Investors should care about a company's quarterly earnings because it shows the state of the business over the past 90 days and provides guidance for the following 90 days. SEE: Earnings: Quality Means Everything
The Numbers: BlackRock's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported $3.65 per share versus the $3.24 per share estimate and revenues of $2.32 billion versus the $2.27 billion estimate. EPS rose 13% while revenue climbed 7.9% from the same period last year. BlackRock bounced back last quarter with a year-over-year revenue increase after four consecutive quarters of revenue declines. BlackRock reported net income of $642 million during the third quarter. According to the reported number, this is up 7.9% from last year's figures.
Management Quote: "We've built a broad and diverse platform at BlackRock focused on delivering strong investment performance and the solutions our clients need regardless of market environment. In the third quarter, we delivered record earnings per share up 23% from the prior year and margins over 40%," said Laurence D. Fink, Chairman and CEO of BlackRock. "We achieved these results through robust new business generation across each of our channels with particular strength in key growth areas on which we've focused, including Retail and iShares and our DC business, strong non-operating results and due to the benefits of share repurchases."
A Look Back: Net income has dropped 1.9% year-over-year on average across the last five quarters. Performance was hurt by a 15.5% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.
Looking Ahead: Over the past 90 days, the average estimate for the fourth quarter has fallen from $3.71 per share to $3.62, indicating that analysts are growing pessisimistic about the company's performance next quarter. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate for the fiscal year is $13.10 per share, down from $13.37 90 days ago.
by
Investopedia Staff
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