What Are Analysts Saying About BlackRock Inc’s (NYSE:BLK) Growth?
In December 2017, BlackRock Inc (NYSE:BLK) released its most recent earnings update. Generally, analyst consensus outlook seem pessimistic, with profits predicted to drop by -7.53% next year relative to the past 5-year average growth rate of 8.26%. Presently, with earnings at US$4.97B, we should see this fall to US$4.60B by 2019. Below is a brief commentary around BlackRock’s earnings outlook going forward, which may give you a sense of market sentiment for the company. For those keen to understand more about other aspects of the company, you can research its fundamentals here. Check out our latest analysis for BlackRock
How is BlackRock going to perform in the near future?
The view from 11 analysts over the next three years is one of positive sentiment. Given that it becomes hard to forecast far into the future, broker analysts tend to project ahead roughly three years. I’ve plotted out each year’s earnings expectations and inserted a line of best fit to calculate an annual growth rate from the slope in order to understand the overall trajectory of BLK’s earnings growth over these next few years.
This results in an annual growth rate of 2.21% based on the most recent earnings level of US$4.97B to the final forecast of US$5.23B by 2021. EPS reaches $32.32 in the final year of forecast compared to the current $30.65 EPS today. Growth in earnings appears to be a result of top-line expansion of 8.76%, dropping down to the bottome-line. This high rate of growth of revenue squeezes margins, as analysts predict an upcoming margin contraction from the current 39.79% to 32.82% by the end of 2021.
Next Steps:
Future outlook is only one aspect when you’re building an investment case for a stock. For BlackRock, there are three relevant aspects you should look at:
Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
Valuation: What is BlackRock worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether BlackRock is currently mispriced by the market.
Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of BlackRock? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
