BlackRock Q4 Review
BlackRock impressively surpassed its Q4 earnings expectations by posting fourth quarter earnings of $9.66 per share, topping the Zacks Consensus of $8.47 a share by 9% and rising 8% year over year. On the top line, Q4 sales of $4.63 billion slightly topped estimates of $4.62 billion and spiked 7% from the prior-year quarter. Notably, BlackRock has now exceeded earnings expectations for six consecutive quarters.
Image Source: Zacks Investment Research
The favorable Q4 results were accompanied by news that BlackRock would acquire Global Infrastructure Partners for around $12 billion. The deal will create a leading infrastructure platform valued at over $150 billion which BlackRock said is well-positioned to meet fast-growing investor demand with Global Infrastructure Partners being a leader among independent infrastructure fund managers. CEO Larry Fink called the deal transformational as infrastructure is forecasted to be one of the fastest-growing segments of private markets.
Image Source: BlackRock Q4 Investor Presentation
Goldman Sachs Q4 Preview
Investors will be hoping Goldman Sachs’ Asset & Wealth Management segment keeps helping the company expand amid a recovery in capital markets. According to Zacks estimates, Goldman Sachs’ Q4 earnings are anticipated to rise 4% to $3.47 per share with sales projected to be up 1% to $10.71 billion. The Zacks ESP (Expected Surprise Prediction) does indicate Goldman Sachs should reach earnings expectations with the Most Accurate Estimate also having Q4 EPS at $3.47 a share and on par with the Zacks Consensus.
Image Source: Zacks Investment Research
Goldman Sachs most recently topped Q3 earnings expectations by 3% in October with EPS at $5.47 per share but has also missed estimates twice in its last four quarterly reports.
Image Source: Zacks Investment Research
Bottom Line
At the moment BlackRock’s stock currently sports a Zacks Rank #2 (Buy) with Goldman Sachs landing a Zacks Rank #3 (Hold). Both investment management firms should be able to sustain their robust top and bottom line figures, and BlackRock stands out after beating earnings expectations for a sixth consecutive quarter.
