Preview: What to Expect From BlackRock’s Earnings on Wednesday

The world’s largest asset manager BlackRock is expected to report its third-quarter earnings of $9.70 per share on Wednesday, which represents year-on-year growth of over 5% from $9.22 per share seen in the same period a year ago.

The New York-based multinational investment management corporation would post revenue growth of over 13% to around $5.0 billion. In the last four consecutive quarters, on average, the investment manager has delivered an earnings surprise of over 9%.

In the near future, the company expects discretionary money market fee waivers to remain at current levels. In 2021, the adjusted operating margin is anticipated to be similar to that of 2020. It expects low to mid-teens growth in annual contract value over the long term, according to ZACKS Research.

The better-than-expected number would help the stock recoup recent losses.  BlackRock’s shares rose over 16% so far this year. The stock rose about 1% to $848.68 in pre-market trading on Friday.

Analyst Comments

“We believe BlackRock (BLK) is best positioned on the asset mgmt barbell given leading iShares ETF platform, multi-asset & alts combined with technology/Aladdin offerings that should drive ~13% EPS CAGR (2020-23e) via ~6% avg LT organic growth,” noted Michael Cyprys, equity analyst at Morgan Stanley.

“We see further growth ahead for Alts, iShares, international penetration, and the institutional market in the US. Recently acquired Aperio also bolsters solutions offering and organic growth. We expect the premium to widen as BLK takes share in evolving industry and executes on improving organic revenue growth trajectory.”

Blackrock Stock Price Forecast

Nine analysts who offered stock ratings for Blackrock in the last three months forecast the average price in 12 months of $1,007.11 with a high forecast of $1,117.00 and a low forecast of $803.00.

The average price target represents a 19.56% change from the last price of $842.35. From those nine analysts, eight rated “Buy”, one rated “Hold” while none rated “Sell”, according to Tipranks.

Morgan Stanley gave the base target price of $1,021 with a high of $1,428 under a bull scenario and $472 under the worst-case scenario. The firm gave an “Overweight” rating on the investment manager’s stock.

Several other analysts have also updated their stock outlook. JP Morgan raised the target price to $1,052 from $1,029. Evercore ISI lifted the target price to $998 from $970. Jefferies upped the target price to $1075 from $1001.

Check out FX Empire’s earnings calendar