BlackRock (BLK) Up 7.2% Since Last Earnings Report: Can It Continue?

A month has gone by since the last earnings report for BlackRock (BLK). Shares have added about 7.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is BlackRock due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.BlackRock's Q2 Earnings Beat on AUM Growth & Higher RevenuesBlackRock’s second-quarter 2025 adjusted earnings of $12.05 per share handily surpassed the Zacks Consensus Estimate of $10.66. The figure reflects a rise of 16% from the year-ago quarter.The results benefited from a rise in revenues. AUM witnessed robust growth, reaching a record high of $12.52 trillion, driven by net inflows, market appreciation, and a favorable foreign exchange impact. However, higher expenses acted as a headwind.Net income attributable to BlackRock (on a GAAP basis) was $1.59 billion, increasing 7% from the prior-year quarter. We had projected the metric to be $1.57 billion.Revenues Improve, Expenses RiseRevenues (on a GAAP basis) in the quarter were $5.42 billion, missing the Zacks Consensus Estimate of $5.43 billion. The figure increased 13% year over year. The rise was driven by an increase in all revenue components except investment advisory performance fees.Total expenses amounted to $3.69 billion, up 23% year over year. The uptick was due to a rise in all cost components. Our estimate for the metric was $3.32 billion.Non-operating income (on a GAAP basis) was $521 million compared with $214 million in the prior-year quarter. Our estimate for non-operating income was $173.9 million.BlackRock’s adjusted operating income was $2.1 billion, increasing 12% from the prior-year quarter.AUM Balance UpAs of June 30, 2025, AUM totaled $12.52 trillion, reflecting a year-over-year rise of 18%. Our estimate for AUM was $11.66 trillion. The company witnessed long-term net inflows of $46 billion in the reported quarter.As of March 31, 2025, the average AUM of $11.97 trillion rose 15% year over year. We had projected the average AUM to be $11.62 trillion.Share RepurchasesBlackRock repurchased shares worth $375 million in the reported quarter.2025 OutlookIncluding the impact of the HPS acquisition, BlackRock expects a low teens percentage increase in 2025 core G&A expenses with the onboarding of GIP, Preqin and HPS as the main driver of the year-over-year core G&A increase.The adjusted compensation to net revenue ratio is expected to be modestly higher in 2025 due to compensation associated with performance-related revenues from HPS.The HPS deal is expected to add approximately $450 million of revenue, including $225 million in management fees in the third quarter of 2025. The acquisition will likely positively impact BlackRock's overall effective fee rate by 0.6 of a bp.The company expects to repurchase at least $375 million worth of shares per quarter for the balance of the year.The projected tax run rate is 25%.How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.VGM ScoresAt this time, BlackRock has a subpar Growth Score of D, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a grade of F on the value side, putting it in the bottom 20% quintile for value investors.Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, BlackRock has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BlackRock (BLK): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks