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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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 recommends 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.