BlackRock Stock Topped The Consensus In Q4, What's Next?

BlackRocks stock(NYSE: BLK) has gained 3% YTD as compared to the 2% rise in the S&P500 index over the same period. Further, at its current price of $730 per share, the stock is trading 3% below its fair value of $750 Trefis estimate forBlackRocks valuation.The worlds largest asset manager outperformed the consensus estimates of revenues and earnings in the fourth quarter of 2022. It posted total revenues of $4.3 billion down 15% y-o-y, mainly due to the impact of lower market valuations and negative FX movement on assets under management (AuM). The total investment advisory, administration fees & securities lending revenue (base fees) decreased 14% y-o-y to $3.4 billion. Notably, the average AuM was down by 14% y-o-y to $8.4 trillion. Overall, the adjusted net income fell by 23% y-o-y to $1.26 billion, partly due to a drop in the top line and partly due to higher operating expenses as a % of revenues.