BlackRock Finance Exceeds Q3 Earnings and Revenue Expectations

BlackRock Finance has reported impressive quarterly earnings of $11.46 per share, surpassing the Zacks Consensus Estimate of $10.42 per share. This marks an increase compared to the earnings of $10.91 per share in the same period last year, with the results adjusted for non-recurring items.

This performance signifies an earnings surprise of 9.98%. In the previous quarter, analysts had predicted earnings of $9.96 per share, while the company actualized earnings of $10.36, resulting in a positive surprise of 4.02%.

Over the last four quarters, BlackRock Finance has outperformed consensus earnings per share estimates consistently.

Belonging to the Zacks Financial - Investment Management industry, BlackRock Finance reported revenues of $5.2 billion for the quarter ending September 2024, which is 3.93% higher than the Zacks Consensus Estimate. This is a significant growth from the revenue of $4.52 billion reported a year earlier. The company has beaten consensus revenue estimates three times over the previous four quarters.

The future performance of the stock will likely depend on the management's insights during the earnings call regarding the sustainability of recent results and future earnings expectations.

Since the start of this year, BlackRock Finance shares have risen approximately 17.7%, while the S&P 500 index has gained about 21.2% during the same period.

Looking Ahead for BlackRock Finance

With BlackRock Finance underperforming the market thus far in 2024, investors are curious about the stock's future trajectory. While there are no straightforward answers to this question, tracking the company's earnings outlook is a useful approach. This encompasses the current consensus earnings expectations for upcoming quarters, along with any recent changes to those estimates.

Research shows a significant correlation between short-term stock movements and earnings estimate revisions. Investors can monitor these revisions independently or utilize tools such as the Zacks Rank, which effectively leverages the insights generated from earnings estimate changes.

Prior to the latest earnings report, the trend in estimate revisions for BlackRock Finance has been mixed. Although the magnitude and direction of these revisions may shift following the earnings announcement, the current trend has resulted in a Zacks Rank of #3 (Hold) for the stock. This indicates that the shares are likely to perform in alignment with the market in the near term.

The coming days will reveal how earnings estimates for subsequent quarters and the current fiscal year may adjust. Currently, the consensus EPS estimate stands at $11.14 with anticipated revenues of $5.56 billion for the next quarter, and for the current fiscal year, the EPS estimate is $41.83, alongside projected revenues of $20.1 billion.

Investors should also consider that industry outlooks can greatly influence the stock's performance. As per the Zacks Industry Rank, the Financial - Investment Management industry is currently positioned in the top 41% among over 250 Zacks industries. Research indicates that firms in the top 50% of Zacks-ranked industries tend to outperform those in the bottom 50% by a margin of more than 2 to 1.

Another firm in this industry, SEI Investments (NASDAQ: SEIC), has not yet released its quarterly report for the period ending September 2024.

This investment management entity is expected to announce quarterly earnings of $1.07 per share, reflecting an increase of 23% compared to last year. Over the past 30 days, the consensus EPS estimate for SEI Investments has been revised upwards by 2%.

Furthermore, SEI Investments' anticipated revenues for the quarter are projected at $532.11 million, representing an 11.6% increase from the same period last year.

BlackRock, Earnings, Finance