The financial giant BlackRock (NYSE:BLK) is anticipated to surpass consensus estimates for its fiscal Q3 2023 results, with earnings per share (EPS) expected to be $8.72, exceeding the consensus EPS estimate of $8.56. This projection follows a strong performance in the first half of 2023 when the firm reported an adjusted net income of $2.52 billion, a notable 27% year-on-year increase in the last quarter driven by improvements in non-operating income.
BlackRock's robust financial health is further evidenced by InvestingPro data, which highlights a market cap of $95.84 billion, and a P/E Ratio of 18.62. The firm's revenue for the last twelve months is reported at $17.35 billion, with a gross profit of $8421 million. Its return on assets for the same period stands at 4.23%.
Despite a 1% year-on-year decrease in total revenue to $4.46 billion last quarter, attributed to a decline in base and distribution revenues, BlackRock's Assets under Management (AuM) experienced growth. The firm saw a 2% year-on-year increase in AuM, reaching $9.19 trillion.
BlackRock's technology services fees have shown promising growth, with a 4% year-on-year increase. This growth is expected to contribute to Q3 revenues estimated at around $4.62 billion, slightly above the consensus estimate.
Since early 2017, BlackRock's Sharpe Ratio, which measures return per unit of risk, has been lower than both the S&P 500 Index and Trefis Reinforced Value portfolio. Yet, it's worth noting that BlackRock has a history of delivering a high return on invested capital and has raised its dividend for 13 consecutive years, as pointed out by InvestingPro Tips.
Looking ahead to the end of fiscal 2023, full-year revenues are projected to reach $18.38 billion. The company's valuation is predicted to be $803 per share, a significant 24% increase from the current market price. This estimate is based on a Price/Earnings (P/E) multiple just above 23x in fiscal 2023 and an anticipated full-year 2023 GAAP EPS of $34.19.
For those interested in more in-depth advice, InvestingPro offers numerous additional tips for BlackRock and other companies. These tips can be accessed through their Pro product, which can be found here.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.