BlackRock, Inc. ($BLK) Earnings (Q3 FY22)

 BlackRock, Inc. ($BLK) Earnings and Opinion:


BlackRock is a company in the Financial Services sector and operates in the Asset Management industry. The company is a publicly owned investment manager. BlackRock was founded in 1988 and is currently headquartered in New York City, New York. The company made its debut on the stock market in 1999.

BlackRock Earnings Results:

  • Revenue of $4.311B missing expectations of $4.333B
  • Operating Margin of 35.40% missing expectations of 35.59%
  • Performance Fees of $82M missing expectations of $152.92M
  • Technology Services Revenue of $338M missing expectations of $344M
  • Adj Diluted EPS of $9.55 beating expectations of $7.03
Opinion:
BlackRock is currently soaring today, moving up over 6%. The company reported earnings before the market opened this morning. BlackRock lost 16% in AUM (Assets Under Management) due to the fall in equity and bond markets. They credit the fall due to the Central Bank raising interest rates to try and curb inflation. AUM levels fell down to 2020 levels, as investors have pulled money away from BlackRock offerings. Diving into the key financials, EPS definitely is one that stood out. They saw a pretty nice beat on that. Performance Fees were way down, but that shouldn't worry investors because the market has tumbled this year. This should be no surprise to anyone on the Performance Fees miss. We will probably see worst performance to come as the Fed will continue to tamper with the markets to try and curb inflation. I think BlackRock has made this apparent to investors that we have not yet reached the bottom and that we may see downside from here. Overall, the investors took the report well and they will continue to trust BlackRock to do business. As far as valuation goes, Relative P/E is at 0.90 which is above peers. The ROE is at 15.59%, which is below peers. PEG Ratio is at 8.49, which is above peers. Overall, BlackRock is right in the middle, so average in valuation, compared to industry peers. In my opinion, I think BlackRock is one of the best stocks you can invest in, within this industry. 
They have the most AUM, and they are probably one of the furthest away from default. They probably have some of the best talent from all around the world running their portfolios as well. I think it is a great company to trust and it is explanatory with their performance of portfolios over the year. I am long BlackRock $BLK.


*Information from Yahoo Finance and Bloomberg

Comments

Post a Comment

Popular posts from this blog

Weekly Earnings Review: September 25, 2023- September 29, 2023

     It was a nice little break in the earnings report, but just like that we are back! We are slowly easing our way back into earnings season. However, this week marked the end of Q3 and September. September was a downturn from the rally we saw earlier in the year. There is a lot of stuff looming as the government is set to shut down on October 1st. The Fed is keeping a close eye on inflation but this weeks prints showed some signs of improvement. The average consumer is struggling as savings keep dwindling. In terms of our earnings, we just had two companies that reported this week. One is a warehouse style retailer and the other is a wide range consulting firm.  Tuesday, September 26, 2023 Costco Wholesale Corporation (COST)-     Costco beat expectations on both the top and bottom line. The stock saw a decline after the initial earnings report, but by the end of the week it has hit a new 52-week high. The revenue growth was impressive as it grew by a hair under 10%. The COGS growth
Read more

Weekly Earnings Review: October 16, 2023- October 20, 2023

      Well earnings season is finally among us, so we will start producing more beefier blog posts and cover a lot more companies over these next few weeks. I had one company report last week that I decided to throw into this weeks post, because I felt that it was pointless to make a post with just one boring company. With the inclusion of that company, we will cover 7 companies that report earnings this week and will give your our thoughts and opinions on how they performed during the quarter and the outlook. There is a lot of controversy going on with a war breaking out in Israel and the House of Representatives with out a speaker. This year seems to be the year of how geopolitics affect the market. There seems to be a lot of confusion with the outlook of the market right now, but inflation numbers still look to be fair and the earnings of major companies will be able to tell us a little bit more about where this is headed.  Thursday, October 12, 2023 Walgreens Boots Alliance (WBA)-
Read more

Weekly Earnings Review: November 27, 2023- December 1, 2023

Image
     Stocks continue to rise as we enter the final month of trading for the year. The S&P 500 and Nasdaq had another stellar month. Bond yields continue to fall, as interest rates have seemed to reach their peak. Estimates are all over the place when it comes to when cutting will start and how many cuts we will see next year. I added a new mantra to particular companies. I want to add some visual pieces to the post to entice the readers. Hope you guys enjoy the visuals and the excerpts. Stay investing! Monday, November 27, 2023 Zscaler (ZS)-      Zscaler continues to carry its momentum, as the company beat on both the top and bottom lines. The company achieved 40% growth on the top line and saw impressive growth on the bottom line as well. Management raised guidance and are expecting around 30% growth on both the top and bottom line. What is so impressive about this company is that they are achieving high growth and high profitability. This is a feat that a lot of software companie
Read more