BlackRock Finance Exceeds Q3 Earnings and Revenue Expectations

BlackRock Finance has released its latest quarterly earnings, reporting a figure of $11.46 per share. This result beats the Zacks Consensus Estimate, which expected earnings to be $10.42 per share. In comparison, the earnings from the same quarter last year were $10.91 per share. It is important to note that these numbers are adjusted for one-time items.

This earnings report indicates a remarkable earnings surprise of 9.98%. In the previous quarter, analysts anticipated earnings of $9.96 per share, but the company actually earned $10.36, resulting in a surprise of 4.02%. Over the past four quarters, BlackRock Finance has successfully surpassed consensus EPS estimates each time.

In addition to earnings, BlackRock Finance reported revenues of $5.2 billion for the quarter ended September 2024, which also exceeded the Zacks Consensus Estimate by 3.93%. This marks an increase from the revenues of $4.52 billion reported the previous year. The company has surpassed consensus revenue estimates three times in the last four quarters as well.

The immediate movement in BlackRock Finance's stock price following these results will largely depend on what management shares during the earnings call regarding future expectations.

In terms of stock performance, BlackRock Finance has seen its shares rise approximately 17.7% since the beginning of the year, while the S&P 500 has gained 21.2% in the same period.

Looking Ahead for BlackRock Finance

Despite the recent earnings success, investors may wonder what lies ahead for the stock. While predicting future movements is challenging, one effective way to assess performance is through the company's earnings outlook. This encompasses current consensus earnings expectations for upcoming quarters, as well as any changes in these forecasts.

Research indicates a strong correlation between stock movements in the near term and trends in earnings estimate revisions. Investors can track these changes independently or utilize tools like the Zacks Rank, which has a proven record of effectively managing earnings estimate revisions.

Leading up to this earnings release, the revision trend for BlackRock Finance's estimates has been mixed. Even though the direction and magnitude of these revisions may change following the earnings announcement, the current situation results in a Zacks Rank #3 (Hold) for the stock, implying that shares are likely to perform near the market average in the near term.

It will be intriguing to observe how estimates for the upcoming quarters and the current fiscal year evolve now that the latest earnings report has been released. Presently, the consensus EPS estimate is $11.14, with projected revenues of $5.56 billion for the next quarter, and $41.83 on projected revenues of $20.1 billion for this fiscal year.

Additionally, it's important for investors to consider the overall industry outlook, as this can significantly influence the stock's performance. The Financial - Investment Management sector is currently positioned in the top 41% among more than 250 Zacks industries. Research shows that the top half of Zacks-ranked industries tend to outperform the bottom half by a factor of more than two to one.

Another player in the same industry, SEI Investments (NASDAQ: SEIC), has yet to publish its results for the quarter ending September 2024. SEI Investments is projected to report quarterly earnings of $1.07 per share, reflecting a year-over-year increase of 23%. In the past month, the consensus EPS estimate for SEI has been revised 2% higher.

Expectations for SEI's revenues are at $532.11 million, indicating an 11.6% increase compared to last year's results.

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