Yahoo Finance BlackRock, Inc. Just Recorded A 13% EPS Beat: Here's What Analysts Are Forecasting Next
Shareholders might have noticed that BlackRock, Inc. (NYSE:BLK) filed its quarterly result this time last week. The early response was not positive, with shares down 5.0% to US$763 in the past week. It looks like a credible result overall - although revenues of US$4.7b were in line with what the analysts predicted, BlackRock surprised by delivering a statutory profit of US$10.48 per share, a notable 13% above expectations. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
See our latest analysis for BlackRock
Following the latest results, BlackRock's twelve analysts are now forecasting revenues of US$20.3b in 2024. This would be a notable 10% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to accumulate 3.9% to US$41.33. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$20.3b and earnings per share (EPS) of US$40.60 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$914. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values BlackRock at US$1,070 per share, while the most bearish prices it at US$756. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that BlackRock's rate of growth is expected to accelerate meaningfully, with the forecast 14% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 5.7% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to grow their revenue 7.3% annually. Factoring in the forecast acceleration in revenue, it's pretty clear that BlackRock is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on BlackRock. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for BlackRock going out to 2026, and you can see them free on our platform here..
You still need to take note of risks, for example - BlackRock has 1 warning sign we think you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
