Results: BlackRock, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders might have noticed that BlackRock, Inc. (NYSE:BLK) filed its quarterly result this time last week. The early response was not positive, with shares down 5.0% to US$763 in the past week. Revenues were US$4.7b, approximately in line with expectations, although statutory earnings per share (EPS) performed substantially better. EPS of US$10.48 were also better than expected, beating analyst predictions by 13%. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

View our latest analysis for BlackRock

After the latest results, the twelve analysts covering BlackRock are now predicting revenues of US$20.2b in 2024. If met, this would reflect a notable 9.9% improvement in revenue compared to the last 12 months. Per-share earnings are expected to increase 3.9% to US$41.34. Before this earnings report, the analysts had been forecasting revenues of US$20.2b and earnings per share (EPS) of US$40.60 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

There were no changes to revenue or earnings estimates or the price target of US$914, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on BlackRock, with the most bullish analyst valuing it at US$1,070 and the most bearish at US$756 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Of course, another way to look at these forecasts is to place them into context against the industry itself. The analysts are definitely expecting BlackRock's growth to accelerate, with the forecast 13% annualised growth to the end of 2024 ranking favourably alongside historical growth of 5.7% per annum over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.2% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BlackRock is expected to grow much faster than its industry.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple BlackRock analysts - going out to 2026, and you can see them free on our platform here.

You still need to take note of risks, for example - BlackRock has 1 warning sign we think you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.