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The financial giant BlackRock (NYSE:) 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.
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