Momentum Stock in Focus: BlackRock, Inc. (NYSE:BLK)

BlackRock, Inc. (NYSE:BLK) reported earnings for the three months ended Mar2016 on April 14, 2016. The company earned $4.25 per share on revenue of $2.62B. Analysts had been modeling earning per share of $4.29 with $2.72B in revenue.

BlackRock, Inc. (BLK) on April 14, 2016 reported financial results for the three months ended March 31, 2016.

“BlackRock performed well in a challenging market environment and our first quarter 2016 results demonstrate our ongoing ability to help clients achieve their investment goals,” commented Laurence D. Fink, Chairman and CEO of BlackRock. “BlackRock generated long-term net inflows of $36 billion in the quarter, driven by positive global flows across both active and index products. Over the last twelve months, we saw $118 billion of long-term net inflows, muting the impact of $148 billion of market and FX headwinds over the same period.

“Strong organic asset growth and positive mix shift largely offset equity market headwinds, as a 1% year-over-year decline in base fees outpaced a 9% average fall in the MSCI World Index over the same period. While we of course were not immune to the effects of market movements, which impacted both base fees and performance fees this quarter, the magnitude and diversification of our inflows speak to the differentiation of BlackRock’s platform and our ability to serve our clients.

“Across our Institutional business, first quarter net inflows of $12 billion were driven by strong active fixed income and multi-asset flows. The investments we’ve made to deepen relationships with our clients are generating results, and over 50% of our largest institutional clients have five or more products managed by BlackRock.

“BlackRock’s US Retail business generated long-term net inflows of $1 billion, primarily driven by strong long-term investment performance across our active fixed income platform. As the US active mutual fund industry experienced first quarter outflows for the first time since the financial crisis, BlackRock’s client-centric, solutions-oriented approach continued to deliver inflows.

“BlackRock Solutions revenue grew 16% year-over-year, led by Aladdin, our unifying technology platform. In the evolving regulatory environment, we are seeing growing demand from clients, as asset owners and managers focus on risk management and adapt to change. We are also seeing increasing opportunities in the retail marketplace to provide our distribution partners with institutional-quality asset allocation, risk management and digital advice capabilities.

BlackRock, Inc. earnings per share showed an increasing trend of 2.8% for the current fiscal year. The company’s expected EPS growth rate for next fiscal year is 2276%.Analysts project EPS growth over the next 5 years at 11.04%. It has EPS annual growth over the past 5 fiscal years of 13.4% when sales grew 5.8. It reported -3.6% sales drop, and -19% EPS decline in the last quarter.

The stock is trading at $363.85, up 34.99% from 52-week low of $275. The stock trades down -1.48% from its peak of $369.33 and 7.13% above the consensus price target of $389.8. Its volume clocked up at 0.63 million shares which is higher than the average volume of 0.61 million shares. Its market capitalization currently stands at $60.30B.