A Sneak Peek Into BlackRock’s Second Quarter Earnings

S&P 500 (NYSE:SPY) component BlackRock (NYSE:BLK) will unveil its latest earnings on Wednesday, July 18, 2012. BlackRock, along with its subsidiaries, provides investment management services to institutional clients and to individual investors through various investment vehicles.

BlackRock Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of $3.04 per share, a rise of 1.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $3.18. Between one and three months ago, the average estimate moved down. It also has dropped from $3.11 during the last month. Analysts are projecting profit to rise by 6.5% versus last year to $13.19.

Past Earnings Performance: Last quarter, the company beat estimates by 13 cents, coming in at profit of $3.16 a share versus the estimate of net income of $3.03 a share. It marked the fourth straight quarter of beating estimates.

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Stock Price Performance: Between April 17, 2012 and July 16, 2012, the stock price fell $22.89 (-11.55%), from $198.18 to $175.29. The stock price saw one of its best stretches over the last year between June 4, 2012 and June 8, 2012, when shares rose for five straight days, increasing 5.4% (+$8.91) over that span. It saw one of its worst periods between November 15, 2011 and November 25, 2011 when shares fell for eight straight days, dropping 8.8% (-$14.61) over that span.

Wall St. Revenue Expectations: On average, analysts predict $2.29 billion in revenue this quarter, a decline of 2.6% from the year-ago quarter. Analysts are forecasting total revenue of $9.32 billion for the year, a rise of 2.6% from last year’s revenue of $9.08 billion.

Analyst Ratings: With 10 analysts rating the stock a buy, one rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 2.1% in the third quarter of the last fiscal year and 10.4% in fourth quarter of the last fiscal year before falling again in the first quarter.

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 9.1% for the last four quarters.

A Look Back: In the first quarter, profit rose 0.7% to $572 million ($3.14 a share) from $568 million ($2.89 a share) the year earlier, exceeding analyst expectations. Revenue fell 0.6% to $2.31 billion from $2.33 billion.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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