The 10-second takeaway
For the quarter ended Dec. 31 (Q4), BlackRock met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue dropped, and earnings per share shrank.
Gross margins contracted, operating margins were steady, net margins dropped.
BlackRock booked revenue of $2.2 billion. The 10 analysts polled by S&P Capital IQ predicted revenue of $2.2 billion. Sales were 11% lower than the prior-year quarter's $2.5 billion
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $3.06. The 18 earnings estimates compiled by S&P Capital IQ anticipated $3.02 per share on the same basis. GAAP EPS of $3.05 for Q4 were 8.7% lower than the prior-year quarter's $3.34 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 54.8%, 630 basis points worse than the prior-year quarter. Operating margin was 37.7%, about the same as the prior-year quarter. Net margin was 24.9%, 150 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $2.2 billion. On the bottom line, the average EPS estimate is $2.96.
Next year's average estimate for revenue is $9.5 billion. The average EPS estimate is $12.96.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 416 members out of 461 rating the stock outperform, and 45 members rating it underperform. Among 120 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 105 give BlackRock a green thumbs-up, and 15 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on BlackRock is outperform, with an average price target of $189.88.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of BlackRock. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.