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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