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BlackRock (BLK) to Report Q2 Earnings: What's in Store?
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BlackRock, Inc. (BLK - Free Report) is slated to report second-quarter 2022 results on Jul 15, before the opening bell. While its revenues for the quarter are expected to have witnessed year-over-year growth, earnings are likely to have declined.
In first-quarter 2022, BLK’s earnings surpassed the Zacks Consensus Estimate. Results benefited from an improvement in revenues, partly offset by higher expenses. Long-term net inflows resulted in a rise in assets under management (AUM) balance.
BlackRock has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering a surprise of 7.7%, on average.
The company’s business activities and prospects in the to-be-reported quarter have not encouraged analysts to revise earnings estimates upward. The Zacks Consensus Estimate for BlackRock’s second-quarter earnings of $9.12 has been unchanged over the past 30 days. The figure indicates a decline of 9.1% from the year-ago quarter’s reported number.
The consensus estimate for second-quarter sales is pegged at $4.90 billion, which suggests an increase of 1.6% from the prior-year quarter’s reported number.
Before we take a look at what our quantitative model predicts for the to-be-reported quarter, let’s discuss the factors that are likely to have impacted the company’s quarterly performance.
Key Factors & Estimates for Q2
BlackRock has been a dominant player in the exchange traded fund (“ETF”) market, given its continued investments in the U.S. iShare core ETFs. With investors increasing allocations toward ETFs instead of alternative investments to reduce management costs, the company’s iShares inflows have been strong over the past several quarters.
Thus, supported by expected asset inflows, BlackRock’s AUM balance is likely to have improved in the second quarter, thereby positively impacting related fees.
The Zacks Consensus Estimate for total investment advisory, administration fees and securities-lending revenues for the to-be-reported quarter is pegged at $3.86 billion, suggesting a marginal sequential rise.
The Zacks Consensus Estimate for the company’s investment advisory performance fees is pegged at $190 million, indicating a surge of 93.9% from the previous quarter’s reported number.
The consensus estimate for distribution fees of $394 million indicates a rise of 3.4% from the previous quarter’s reported figure.
BlackRock’s expenses have been elevated over the past few years. Given that the company has been continuing with its restructuring initiatives to modify the size and shape of its workforce, and improve operating efficiency, overall costs are expected to have increased in the second quarter as well.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether BlackRock will be able to beat the Zacks Consensus Estimate for earnings this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — which is required to be confident of an earnings surprise call.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for BlackRock is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).
Stocks Worth a Look
A couple of finance stocks that you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases, per our model, are Truist Financial (TFC - Free Report) and Associated Banc-Corp (ASB - Free Report) .
The Earnings ESP for Truist Financial is +1.38% and it carries a Zacks Rank #3 at present. The company is slated to report second-quarter 2022 results on Jul 19.
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BlackRock (BLK) to Report Q2 Earnings: What's in Store?
BlackRock, Inc. (BLK - Free Report) is slated to report second-quarter 2022 results on Jul 15, before the opening bell. While its revenues for the quarter are expected to have witnessed year-over-year growth, earnings are likely to have declined.
In first-quarter 2022, BLK’s earnings surpassed the Zacks Consensus Estimate. Results benefited from an improvement in revenues, partly offset by higher expenses. Long-term net inflows resulted in a rise in assets under management (AUM) balance.
BlackRock has an impressive earnings surprise history. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering a surprise of 7.7%, on average.
BlackRock, Inc. Price and EPS Surprise
BlackRock, Inc. price-eps-surprise | BlackRock, Inc. Quote
The company’s business activities and prospects in the to-be-reported quarter have not encouraged analysts to revise earnings estimates upward. The Zacks Consensus Estimate for BlackRock’s second-quarter earnings of $9.12 has been unchanged over the past 30 days. The figure indicates a decline of 9.1% from the year-ago quarter’s reported number.
The consensus estimate for second-quarter sales is pegged at $4.90 billion, which suggests an increase of 1.6% from the prior-year quarter’s reported number.
Before we take a look at what our quantitative model predicts for the to-be-reported quarter, let’s discuss the factors that are likely to have impacted the company’s quarterly performance.
Key Factors & Estimates for Q2
BlackRock has been a dominant player in the exchange traded fund (“ETF”) market, given its continued investments in the U.S. iShare core ETFs. With investors increasing allocations toward ETFs instead of alternative investments to reduce management costs, the company’s iShares inflows have been strong over the past several quarters.
Thus, supported by expected asset inflows, BlackRock’s AUM balance is likely to have improved in the second quarter, thereby positively impacting related fees.
The Zacks Consensus Estimate for total investment advisory, administration fees and securities-lending revenues for the to-be-reported quarter is pegged at $3.86 billion, suggesting a marginal sequential rise.
The Zacks Consensus Estimate for the company’s investment advisory performance fees is pegged at $190 million, indicating a surge of 93.9% from the previous quarter’s reported number.
The consensus estimate for distribution fees of $394 million indicates a rise of 3.4% from the previous quarter’s reported figure.
BlackRock’s expenses have been elevated over the past few years. Given that the company has been continuing with its restructuring initiatives to modify the size and shape of its workforce, and improve operating efficiency, overall costs are expected to have increased in the second quarter as well.
Earnings Whispers
According to our quantitative model, it cannot be conclusively predicted whether BlackRock will be able to beat the Zacks Consensus Estimate for earnings this time. This is because it does not have the right combination of the two key ingredients — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — which is required to be confident of an earnings surprise call.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: The Earnings ESP for BlackRock is 0.00%.
Zacks Rank: The company currently carries a Zacks Rank #5 (Strong Sell).
Stocks Worth a Look
A couple of finance stocks that you may want to consider as these have the right combination of elements to post an earnings beat in their upcoming releases, per our model, are Truist Financial (TFC - Free Report) and Associated Banc-Corp (ASB - Free Report) .
The Earnings ESP for Truist Financial is +1.38% and it carries a Zacks Rank #3 at present. The company is slated to report second-quarter 2022 results on Jul 19.
Associated Banc-Corp is scheduled to release second-quarter 2022 earnings on Jul 21. The company, which carries a Zacks Rank #3 at present, has an Earnings ESP of +1.14%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.