BlackRock, Inc. (NYSE:BLK), the world's largest fund manager by assets, reported its earnings for the three months through June 2013 this morning before the markets opened. The company showed earnings of $4.15 per share on revenue of $2.48 billion for the three month period. BlackRock, Inc. (NYSE:BLK) stock closed at $272.29 per share on yesterday's market.
In the run up to the earnings announcement, analysts following the investment vehicle were looking for earnings of $3.82 per share on revenue of $2.49 billion. In the second quarter of 2012, the company earned $3.10 per share on revenue of $2.2 billion. The firm's earnings have consistently impressed in recent times, beating the estimates of analysts in the last five quarters consecutively.
A step too far?
BlackRock, Inc. (NYSE:BLK) has been incredibly impressive in 2013. The company is trading at a P/E of close to twenty, however, which is high for the industry. Some analysts have downgraded the firm's stock based on a belief that the optimism surrounding the company has already been priced in.
Since the start of 2013, BlackRock shares have risen in value by more than 30 percent. The company might be overvalued, but its performance in the first half of 2013 seems to have vindicated the rise. Shareholders will have to decide for themselves whether or not the bet is worth sticking with through the rest of the year.
BlackRock, Inc. (NYSE:BLK) earnings have been rising for several quarters consecutively, but an outsized proportion of that rise is related to the company's cost cutting program. The firm has, like its contemporaries, been lowering its costs. The effect in earnings is good for investors, but revenues have remained relatively stable.
BlackRock big moves
BlackRock, Inc. (NYSE:BLK) has been involved in some big moves in the first half of 2013. Most of the company's moves have been greeted with praise by the market.
The company announced the purchase of the ETF wing of Credit Suisse Group AG (NYSE:CS) in January, a move which will see it establish a firm presence in the growing business. BlackRock, Inc. (NYSE:BLK) is still preparing for the future, and that's one of the reasons investors have been buying into the company.
BlackRock will host a conference call
BlackRock, Inc. (NYSE:BLK) will host a conference call at 9 am EST in order to discuss these earnings results. Investors and analysts are likely interested in the comapny's guidance, and the executive's take on yesterday's testimony by Ben Bernanke.