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BlackRock Beats on Both Top and Bottom Lines

By Seth Jayson – Updated Apr 7, 2017 at 6:18AM

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Just the facts, Fool.

BlackRock (NYSE: BLK) reported earnings on Oct. 17. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Sep. 30 (Q3), BlackRock beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue expanded and GAAP earnings per share increased.

Gross margins shrank, operating margins contracted, net margins expanded.

Revenue details
BlackRock logged revenue of $2.32 billion. The 13 analysts polled by S&P Capital IQ hoped for revenue of $2.27 billion on the same basis. GAAP reported sales were 4.3% higher than the prior-year quarter's $2.23 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $3.47. The 20 earnings estimates compiled by S&P Capital IQ anticipated $3.31 per share. GAAP EPS of $3.65 for Q3 were 13% higher than the prior-year quarter's $3.23 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 53.5%, 70 basis points worse than the prior-year quarter. Operating margin was 37.7%, 10 basis points worse than the prior-year quarter. Net margin was 27.7%, 100 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $2.46 billion. On the bottom line, the average EPS estimate is $3.65.

Next year's average estimate for revenue is $9.25 billion. The average EPS estimate is $13.29.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 443 members out of 491 rating the stock outperform, and 48 members rating it underperform. Among 113 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 101 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 $205.11.

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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. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend BlackRock. 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.

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