BlackRock (BLK) earnings preview: expect to see strong organic growth

4:50 am ET, 12 Jul 2018

BlackRock, Inc. (BLK) is expected to report earnings on July 16 before market open.  The report will be for the fiscal Quarter ending June 2018. Shares are trading at 504.93, up 0.16% from yesterday.

What are the BLK earnings expectations?  What news will the market be watching out for?  

BlackRock is at its core a passive investor. Through its iShares exchange-traded fund platform and institutional index fund offerings, the firm sources close to two-thirds of its managed assets (and nearly half its annual revenue) from passive products. Investors and advisors are seeking out providers of passive products, as well as active asset managers that have greater scale, established brands, solid long-term performance, and reasonable fees, so BlackRock is ideally positioned to serve their needs. 

The biggest differentiators for the firm are its scale, ability to offer both passive and active products, greater focus on institutional investors, strong brands, and reasonable fees. The iShares ETF platform, as well as technology that provides risk management and product/portfolio construction tools directly to end users, should allow BlackRock to generate higher levels of organic growth than its publicly traded peers the next five years.

With $6.3 trillion in total assets under management at the end of March 2018, BlackRock is the largest asset manager in the world. Unlike many of its peers, the firm is currently generating solid organic growth with its operations, with its iShares platform, which is the leading domestic and global provider of ETFs. This has helped the company to maintain average annual organic growth of 4%-5% the past several years despite the increased size and scale of its operations. 

BlackRock, Inc. has a mixed history of beating analysts’ earnings estimates. In the past four quarters, the company: 

  • Missed analyst EPS estimates by 15 cents ($5.24 actuals vs. $5.39 forecast) in FQ2’17;
  • Beat analyst EPS estimates by 32 cents ($5.92 actuals vs. $5.60 forecast) in FQ3’17;
  • Beat analyst EPS estimates by 17 cents ($6.24 actuals vs. $6.07 forecast) in FQ4’17;
  • Beat analyst EPS estimates by 29 cent ($6.70 actuals vs. $6.41 forecast) in FQ1’18.

For FQ2’18, EPS is expected to grow by 27% year-over-year to $6.67, while revenue is expected to grow 22% year-over-year to $3.60 billion.  

Over the last month, BlackRock, Inc. (BLK) returned -8.1%.

BlackRock, Inc. (BLK) forward P/E ratio is 15.96, and it’s high compared to its industry peers’ P/E ratio.

BlackRock, Inc. (BLK) average analyst price target ($607.43) is 20.3% above its current price ($504.93).

For the latest price and information on BlackRock, Inc., please visit Finstead and search for "BLK price" or "BLK news".

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

BlackRock, Inc. (BLK) Stock Guide

Updated at: 2:54 am ET, 12 Jul 2020

Before we start: if you're looking for BLK stock price, you can quickly find it out by visiting Finny and typing "BLK quote". If you're looking for a quick scoop on BLK stock (chart, price target, market cap, news and buy or sell analysis), go to Finny and look for "BLK". You'll get all this info in one place. Or you can just type "BLK news" to get the latest stock news.

Looking to buy or sell BlackRock, Inc. (BLK)? Interested in getting the full scoop on BLK, including earnings and dividends, stock forecast, buy or sell analysis and key stats? If so, you came to the right place.

In this BLK stock guide, we'll address key questions about BLK, above and beyond what you can find on Yahoo Finance, Zacks, MarketWatch or Morningstar.

Here is what you'll be able to find in this guide:

Earnings and Dividends: earnings, earnings date, dividend rate and dividend yield;
Analyst Predictions: stock forecast and analyst ratings;
Analysis: Finny Score and buy or sell analysis;
Key Stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio, industry, sector, and number of employees.

And here is the list of questions we'll answer:
1. What are BLK earnings?
2. When is BLK earnings date?
3. What is BLK dividend?
4. What is BLK dividend yield?
5. What is BLK stock forecast (i.e., prediction)?
6. BLK buy or sell? What is BLK Finny Score?
7. What are the reasons to buy BLK? Why should I buy BLK stock?
8. What are the reasons to sell BLK? Why should I sell BLK stock?
9. What are BLK key stats: revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

So let's start. Scroll down to the question that interests you the most.

Earnings and Dividends

1. What are BLK earnings?

BLK trailing 12-month earnings per share (EPS) is $26.98.

2. When is BLK earnings date?

BLK earnings date is July 17, 2020.

3. What is BLK dividend?

BLK forward dividend is $14.52.

4. What is BLK dividend yield?

BLK forward dividend yield is 2.99%.

Analyst Predictions

5. What is BLK stock forecast (i.e., prediction)?

Based on BLK analyst price targets, BLK stock forecast is $515.00 (for a year from now). That means the average analyst price target for BLK stock is $515.00. The prediction is based on 15 analyst estimates.

The low price target for BLK is $441.00, while the high price target is $570.00.

BLK analyst rating is Buy.

Analysis

6. BLK buy or sell? What is BLK Finny Score?

#{finnyScore:33}Our quantitative analysis shows 4 reasons to buy and 8 reasons to sell BLK, resulting in Finny Score of 33.

7. What are the reasons to buy BLK? Why should I buy BLK stock?

Here are the reasons to buy BLK stock:

  • BlackRock is the largest asset manager in the world, with $5.420 trillion in total AUM and clients in more than 100 countries.
  • Product diversity and a heavier concentration in the institutional channel have traditionally provided BlackRock with a much stickier set of assets than its peers.
  • BlackRock's well-diversified product mix makes it fairly agnostic to shifts among asset classes and investment strategies, limiting the impact that market swings or withdrawals from individual asset classes or investment styles can have on its AUM.
  • BLK quarterly revenue growth was 10.90%, higher than the industry and sector average revenue growth (0.34% and 2.03%, respectively). See BLK revenue growth chart.
  • BLK forward dividend yield is 2.99%, higher than the industry (0.88%) and sector (1.09%) forward dividend yields. See BLK forward dividend chart.
  • BLK average analyst rating is Buy. See BLK analyst rating chart.
  • BLK cash to debt ratio is 1.35, higher than the average industry (0.06) and sector (0.18) cash to debt ratio. See BLK cash to debt chart.

8. What are the reasons to sell BLK? Why should I sell BLK stock?

Let's look at the reasons to sell BLK stock (i.e., the bear case):

  • The sheer size and scale of BlackRock's operations could end up being the biggest impediment to the firm's long-term growth.
  • Despite accounting for close to two thirds of total long-term AUM, institutional client arrangements generate only one third of BlackRock's long-term base fees given the lower fee structure attached to these large investment mandates.
  • While actively managed funds account for 29% of total long-term AUM, they generate just 48% of long-term base fees, increasing the pressure on BlackRock to gets its active equity and fixed-income offerings on a consistent footing.
  • BLK stock price ($554.08) is close to the 52-week high ($572.49). Perhaps now is a good time to sell? See BLK price chart.
  • BLK profitability is declining. The YoY profit margin change was -10.13 percentage points. See BLK profitability chart.
  • BLK forward P/E ratio is 17.07, which is high compared to its industry peers’ P/E ratios. See BLK forward P/E ratio chart.
  • BLK Price/Book ratio is 2.30, which is high compared to its industry peers’ P/B ratios. See BLK forward Price/Book ratio chart.
  • BLK Price/Sales ratio is 5.18, which is high compared to its industry peers’ P/S ratios. See BLK forward Price/Sales ratio chart.
  • BLK PEG ratio (P/E adjusted for growth) is 8.00, which is high compared to its industry peers’ PEG ratios. See BLK PEG chart.
  • BLK average analyst price target ($515.00) is below its current price ($554.08). See BLK price target chart.
  • BLK short interest (days to cover the shorts) ratio is 2.28. The stock garners more short interest than the average industry, sector or S&P 500 stock. See BLK short interest ratio chart.

Key Stats

9. What are BLK key stats : revenue, market cap, revenue growth, profit margin, P/E ratio, P/B ratio industry, sector, and number of employees?

Let's look at the key statistics for BLK:

Metrics BLK
Price $582.42
Average Price Target / Upside $515.00 / -11.58%
Average Analyst Rating Buy
Forward Dividend Yield 2.47%
Industry Asset Management
Sector Financial Services
Number of Employees 14,900
Market Cap $89.68B
Forward P/E Ratio 18.00
Price/Book Ratio 5.97
Revenue (TTM) $15.03B
YoY Quarterly Revenue Growth 3.50%
Profit Margin 29.55%

If you liked this analysis, check out Stock Guides for other stocks.

Disclaimer: The news article above expresses the author’s opinion about the topic of the article. We strongly advise you not to base your investment decisions just on this article alone. If you’d like to become a writer for Finny Bites, please send us an email at hi@askfinny.com.

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