Barclays Suspects BlackRock's Q2 Results Indicate Slower Performance Ahead

BlackRock's reported EPS of $4.78 was lower than the analysts' estimate of $4.94, but was slightly higher than the Street's $4.77.

"2Q was an ok quarter given the challenging environment, but we believe it foreshadows a slower period ahead for fundamental performance. Flows were softer than expected and underwhelmed on the active side as the organic base fee growth rate trended lower," said Barclays.

Related Link: KBW Analysts Downgrade BlackRock As Shares Approach Their Target Price

The analysts don't forecast much of an offset in the form of expense saves or repurchases, but rather believe that earnings power will remain challenging for the near term.

Barclays reiterated its Equal-Weight rating and lowered its price target and EPS estimates. The analysts reduced the 2017 EPS estimate to $22.05 from $22.70 and their price target to $353 from $363, assuming 16x 2017 EPS estimate multiple.

At time of writing, BlackRock was modestly up (0.05 percent on the day), trading at $335.37.

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