T. Rowe Price Earnings: Positive Earnings Streak Continues

S&P 500 (NYSE:SPY) component T. Rowe Price Group Inc. (NASDAQ:TROW) reported net income above Wall Street’s expectations 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.

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T. Rowe Price Group Inc. Earnings Cheat Sheet

Results: Net income for T. Rowe Price Group Inc. rose to $247.3 million (94 cents per share) vs. $185.5 million (71 cents per share) in the same quarter a year earlier. This marks a rise of 33.3% from the year-earlier quarter.

Revenue: Rose 13.1% to $769.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: T. Rowe Price Group Inc. beat the mean analyst estimate of 84 cents per share. Analysts were expecting revenue of $760.4 million.

Quoting Management: James A.C. Kennedy, the company’s chief executive officer and president, commented: “Despite global economic worries, equity markets rose during the third quarter sparked by a wave of central bank actions and strong corporate earnings growth. Bond markets also posted solid gains amid demand for lower-risk assets. The resulting market appreciation, combined with healthy total net inflows, boosted the firm’s ending and quarterly average assets under management to record highs for a quarter-end period.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 1% and in the first quarter, the figure rose 1.5%.

The company beat estimates last quarter after falling short in the previous two quarters. In the second quarter, it missed the mark by 2 cents, and in the first quarter, it came in under estimates by 2 cents.

The company’s revenue has now risen for two quarters in a row. In the second quarter, revenue increased 3.5% to $744.2 million from the year-earlier quarter.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the fourth quarter has reached 88 cents per share, up from 85 cents. For the fiscal year, the average estimate has moved up from $3.22 a share to $3.26 over the last thirty days.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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