Blackrock Posts Mixed Q4 Results; Street Says Buy

Global investment management corporation BlackRock, Inc. (NYSE: BLK) recently reported mixed fourth-quarter results for the quarter ended December 31, 2021. Although earnings beat estimates, revenues, despite witnessing growth, failed to meet expectations.

Following the news, shares of the company declined 2.2% to close at $848.60 on Friday.

Revenue & Earnings

Blackrock reported quarterly revenues of $5.11 billion, which denotes a rise of 14% from the prior year. This growth was primarily driven by a 17% year-over-year increase in revenues from investment advisory, administration fees and securities lending. Yet, the figure failed to surpass the consensus estimate of $5.13 billion.

The company reported earnings per share (EPS) of $10.42, up 2.4% from the previous year. Moreover, the figure topped the consensus estimate of $10.04.

Meanwhile, BlackRock’s total net flows for the quarter stood at $211.7 billion, which represents a rise of 66.8% from the prior year.

Dividend Increase

Blackrock has increased its dividend per share by 18% to $4.88. The dividend will be paid on March 23, 2022, to shareholders of record at the close of business on March 7, 2022.

CEO‘s Comments

The CEO of Blackrock, Laurence D. Fink, said, “BlackRock delivered the strongest organic growth in our history, even as our assets under management reached new highs. We generated $540 billion of net inflows in 2021, including an industry leading $267 billion of active net inflows. Our business is more diversified than ever before – active strategies, including alternatives, contributed over 60% of 2021 organic base fee growth.”

Stock Rating

Recently, J.P. Morgan analyst Ken Worthington reiterated a Buy rating on the stock with a price target of $1,027, which implies upside potential of 21% from current levels.

Wall Street’s Top Analysts have awarded Blackrock a Strong Buy consensus rating based on 7 unanimous Buys. The average Blackrock price target of $1,038.57 implies upside potential of 22.4% from current levels. Shares have gained 15.7% over the past year.

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