- BlackRock releases its first quarter earnings on Tuesday. Analysts expect $3.34 billion in revenue.
- In the fourth quarter, the firm’s assets under management dipped to $5.98 trillion. It’s still the world’s largest asset manager, and assets are predicted to tick back up, to $6.31 trillion.
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BlackRock should bounce back from fourth quarter market volatility when it reports earnings on Tuesday, according to analysts.
The firm’s assets declined in the fourth quarter, to $5.98 trillion, but analysts expect that number to pick back up, to $6.22 trillion – $6.5 trillion, according to Bloomberg data.
Overall, analysts are expecting a stronger earnings season for the asset management industry than the fourth quarter, when managers suffered from market volatility and saw clients pull billions. In an analyst note last week, Jefferies’ asset management researchers noted the S&P 500 was down 13.5% in the fourth quarter but up 13.65% in the first quarter. The more positive market led them to increase most of their earnings per share estimates for asset managers.
The Jefferies analysts expect positive capital flows in the first quarter for BlackRock’s individual investor business. The firm will hold its earnings call at 8:30 a.m. EST on Tuesday.
"2019 expense outlook will be a key focus of the earnings call," the analysts wrote. "Beyond the company’s normal ‘margin aware’ commentary, we anticipate greater flexibility around [general and administrative expenses] and other discretionary items."
Here are the rest of the key estimates:
- Revenue: $3.34 billion
- Net income: $965.25 million
- Adjusted earnings per share: $6.13
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