BlackRock (BLK) Stock Down Despite Positive Earnings Report

NEW YORK (TheStreet) -- BlackRock  (BLK) shares are down despite the company's positive earnings report on Thursday.

Shares are down 2.4% to $302.57 in trading today.

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The company earned $756 million, or $4.40 per share in net income, compared to $632 million and $3.62 per share last year, a 19.6% increase in year over year quarterly net income.

The company's $4.43 EPS beat analysts EPS estimates of $4.11 by 7.8%.

TheStreet Ratings team rates BLACKROCK INC as a Buy with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:

"We rate BLACKROCK INC (BLK) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in stock price during the past year, impressive record of earnings per share growth, good cash flow from operations and expanding profit margins. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • The revenue growth came in higher than the industry average of 7.7%. Since the same quarter one year prior, revenues slightly increased by 9.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • The stock has risen over the past year as investors have generally rewarded the company for its earnings growth and other positive factors like the ones we have cited in this report. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • BLACKROCK INC has improved earnings per share by 23.7% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, BLACKROCK INC increased its bottom line by earning $16.88 versus $13.80 in the prior year. This year, the market expects an improvement in earnings ($18.21 versus $16.88).
  • Net operating cash flow has significantly increased by 229.37% to $1,166.00 million when compared to the same quarter last year. In addition, BLACKROCK INC has also vastly surpassed the industry average cash flow growth rate of 124.57%.
  • 43.54% is the gross profit margin for BLACKROCK INC which we consider to be strong. Regardless of BLK's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, BLK's net profit margin of 30.28% significantly outperformed against the industry.
  • You can view the full analysis from the report here: BLK Ratings Report
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