The 10-second takeaway
For the quarter ended Dec. 31 (Q4), BlackRock beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue increased. Non-GAAP earnings per share expanded significantly. GAAP earnings per share increased significantly.
Margins grew across the board.
BlackRock notched revenue of $2.54 billion. The 15 analysts polled by S&P Capital IQ anticipated a top line of $2.49 billion on the same basis. GAAP reported sales were 14% 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 came in at $3.96. The 21 earnings estimates compiled by S&P Capital IQ forecast $3.70 per share. Non-GAAP EPS of $3.96 for Q4 were 29% higher than the prior-year quarter's $3.06 per share. GAAP EPS of $3.93 for Q4 were 29% higher than the prior-year quarter's $3.04 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 57.0%, 220 basis points better than the prior-year quarter. Operating margin was 39.3%, 160 basis points better than the prior-year quarter. Net margin was 27.2%, 230 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $2.42 billion. On the bottom line, the average EPS estimate is $3.48.
Next year's average estimate for revenue is $10.23 billion. The average EPS estimate is $15.52.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 478 members out of 523 rating the stock outperform, and 45 members rating it underperform. Among 145 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 135 give BlackRock a green thumbs-up, and 10 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 $213.79.
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