T. Rowe Price Earnings Cheat Sheet: Profits Climbs Again

S&P 500 (NYSE:SPY) component T. Rowe Price Group, Inc. (NASDAQ:TROW) reported its results for the third quarter. T. Rowe Price, a financial services holding company, provides investment advisory services to individual and institutional investors in the sponsored mutual funds and other investment portfolios.

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

T. Rowe Price Group Earnings Cheat Sheet for the Third Quarter

Results: Net income for the financial services company rose to $185.5 million (71 cents per share) vs. $169.1 million (64 cents per share) in the same quarter a year earlier. This marks a rise of 9.7% from the year earlier quarter.

Revenue: Revenue was $679.4 million last quarter.

Actual vs. Wall St. Expectations: TROW fell short of the mean analyst estimate of 73 cents per share. It fell short of the average revenue estimate of $695.2 million.

Quoting Management: James A.C. Kennedy, the company’s chief executive officer and president, commented: “While we are pleased that a broad range of our portfolios continues to deliver very attractive long-term returns, volatile markets and lower valuations have made this a tough environment for our clients and the firm in the short term. Bond returns were mixed during the quarter and global stock markets fell sharply. Slower economic growth, the intensifying European sovereign debt crisis and the overall lack of effective decision making by political leaders in both the U.S. and Europe have heightened volatility and dampened investor confidence.”

Key Stats:
The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 29.1% and in the first quarter, the figure rose 27.2%.

The company has now fallen short of analyst estimates for the last three quarters. It missed the mark by one cent in the second quarter and by 3 cents in the first quarter.

Looking Forward: Over the past ninety days, the average estimate for the fourth quarter has fallen from 85 cents per share to 68 cents, indicating that analysts are growing pessisimistic about the company’s performance next quarter. At $2.91 per share, the average estimate for the fiscal year has fallen from $3.14 ninety days ago.

Competitors to Watch: Federated Investors, Inc. (NYSE:FII), BlackRock, Inc. (NYSE:BLK), Waddell & Reed Financial, Inc. (NYSE:WDR), U.S. Global Investors, Inc. (NASDAQ:GROW), Janus Capital Group Inc. (NYSE:JNS), Franklin Resources, Inc. (NYSE:BEN), Virtus Investment Partners, Inc. (NASDAQ:VRTS), Cohen & Steers, Inc. (NYSE:CNS), Calamos Asset Management, Inc (NASDAQ:CLMS), and Financial Engines Inc (NASDAQ:FNGN).

Investing Insights: Amazon.com has a Stock Chart Technical Analysts Dream About.

(Source: Xignite Financials)