BlackRock (NYSE: BLK) released its Q3 2022 earnings report on October 13, beating analysts’ expectations on the top and bottom lines. In essence, the firm showed revenues of $4.31 billion, a -14.7% year-on-year (YoY) decrease, beating estimates by $140 million.
Similarly, earnings per share (EPS) was $9.55, beating estimates by $2.28, while revenue decline was driven by lower markets and appreciation of the US dollar compared to other currencies.
The firm also saw $65 billion of quarterly long-term net inflows, mostly in exchange-traded fund (ETF) instruments. At the time of writing, the stock remains mostly flat in premarket trading, despite the positive surprise on Q3 earnings.
BLK chart and analysis
In the last month, BLK has been trading in the $526.94 to $648.97 range, currently staying near the low of its 52-week range, below all moving averages. Technical analysis shows a resistance zone from $550.41 to $559.12.
Analysts rate the stock a ‘strong buy,’ with the average price in the next 12 months reaching $676.20, 27.32% higher than the current trading price of $531.10. Notably, out of 10 Wall Street analysts, 8 have a ‘buy’ rating, and 2 have a ‘hold’ rating; interestingly, none have a ‘sell’ rating.
With today’s markets seeing a lot of volatility and BlackRock’s success depending heavily on the market’s health, some downside in the near term could be expected.
Despite a positive earnings surprise, the shares did not move in the premarket, perhaps indicating the caution in markets. Tracking BLK’s short-term performance could specify how investors look at the economy’s health and the possible future behavior of BLK stock.
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