The 10-second takeaway
For the quarter ended March 31 (Q1), BlackRock met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue expanded. Non-GAAP earnings per share grew significantly. GAAP earnings per share grew significantly.
Margins expanded across the board.
BlackRock logged revenue of $2.45 billion. The 15 analysts polled by S&P Capital IQ predicted net sales of $2.44 billion on the same basis. GAAP reported sales were 8.9% higher than the prior-year quarter's $2.25 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 $3.65. The 20 earnings estimates compiled by S&P Capital IQ forecast $3.59 per share. Non-GAAP EPS of $3.65 for Q1 were 16% higher than the prior-year quarter's $3.16 per share. GAAP EPS of $3.62 for Q1 were 15% higher than the prior-year quarter's $3.14 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 53.6%, 200 basis points better than the prior-year quarter. Operating margin was 38.5%, 230 basis points better than the prior-year quarter. Net margin was 25.8%, 40 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $2.51 billion. On the bottom line, the average EPS estimate is $3.85.
Next year's average estimate for revenue is $10.32 billion. The average EPS estimate is $16.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 483 members out of 531 rating the stock outperform, and 48 members rating it underperform. Among 131 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 122 give BlackRock a green thumbs-up, and nine 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 $255.47.
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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.
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