The 10-second takeaway
For the quarter ended June 30 (Q2), BlackRock missed slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share dropped.
Gross margins improved, operating margins grew, and net margins dropped.
BlackRock booked revenue of $2.23 billion. The 11 analysts polled by S&P Capital IQ foresaw a top line of $2.27 billion on the same basis. GAAP reported sales were 5.0% lower than the prior-year quarter's $2.35 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $3.10. The 17 earnings estimates compiled by S&P Capital IQ predicted $3.02 per share. GAAP EPS of $3.08 for Q2 were 4.0% lower than the prior-year quarter's $3.21 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 53.5%, 30 basis points better than the prior-year quarter. Operating margin was 37.2%, 30 basis points better than 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 $2.27 billion. On the bottom line, the average EPS estimate is $3.27.
Next year's average estimate for revenue is $9.22 billion. The average EPS estimate is $13.12.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 432 members rating the stock outperform and 49 members rating it underperform. Among 104 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 92 give BlackRock a green thumbs-up, and 12 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 $206.94.
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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 the 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 don't 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.
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