T Rowe Price Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component T Rowe Price (NASDAQ:TROW) will unveil its latest earnings tomorrow, Tuesday, January 29, 2013. 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.

T Rowe Price Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 89 cents per share, a rise of 21.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 88 cents. Between one and three months ago, the average estimate moved up. It has been unchanged at 89 cents during the last month. Analysts are projecting profit to rise by 15.8% compared to last year’s $3.38.

Past Earnings Performance: Last quarter, the company topped expectations by 3 cents, coming in at profit of 87 cents per share versus a mean estimate of net income of 84 cents per share. This followed two straight quarters of missing estimates.

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A Look Back: In the third quarter, profit rose 33.3% to $247.3 million (94 cents a share) from $185.5 million (71 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 19.2% to $811.1 million from $680.7 million.

Here’s how T Rowe Price traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

trow

Wall St. Revenue Expectations: On average, analysts predict $800 million in revenue this quarter, a rise of 19.1% from the year-ago quarter. Analysts are forecasting total revenue of $3.04 billion for the year, a rise of 10.5% from last year’s revenue of $2.75 billion.

Analyst Ratings: With 12 analysts rating the stock a buy, none rating it a sell and 10 rating the stock a hold, there are indications of a bullish stance by analysts. Over the last three months, the stock’s average rating has increased from hold to moderate buy.

Key Stats:

After experiencing income increases the last three quarters, the company is hoping to keep the good news coming with this earnings announcement. Net income rose 1.5% in the first quarter and 1% in the second quarter before increasing again in the third quarter.

On the top line, the company is looking to build on two-straight revenue increases with this earnings announcement. Revenue rose 3.5% in the second quarter before climbing again in the third quarter.

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