Have you been eager to see how BlackRock, Inc. (BLK - Analyst Report) performed in Q2 in comparison with the market expectations? Let’s quickly scan through the key facts from this New York-based investment management company’s earnings release this morning:
An Earnings Beat
BlackRock came out with adjusted earnings per share of $4.96, beating the Zacks Consensus Estimate of $4.80.
Robust top line growth was the upside during the quarter, while elevated expenses continued to weigh on profitability.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for BlackRock depicted pessimism prior to the earnings release. The Zacks Consensus Estimate has moved slightly lower over the last 30 days.
However, BlackRock has a decent earnings surprise history. Before posting an earnings beat in Q2, the company delivered positive surprises in the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 8.16% in the trailing four quarters.
Revenue Came In Higher Than Expected
BlackRock posted revenues of $2.91 billion, which surpassed the Zacks Consensus Estimate of $2.86 billion. Moreover, it compared favorably with the year-ago quarter figure of $2.72 billion.
Key Statistics to Note:
BlackRock acquired US retail net inflows of $7 billion and achieving a “top-5” ranking in US retail mutual fund industry flows.
BlackRock garnered over $3 billion of net inflows and maintained its #1 position in cross-border mutual fund flows year-to-date, driven by strength in European and Asian equities.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for BlackRock. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
