T. Rowe Price Group Earnings: Here’s Why Investors are Not Excited Now

T. Rowe Price Group, Inc. (NASDAQ:TROW) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.63%.

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T. Rowe Price Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 21.33% to $0.91 in the quarter versus EPS of $0.75 in the year-earlier quarter.

Revenue: Rose 11.16% to $815.7 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: T. Rowe Price Group, Inc. reported adjusted EPS income of $0.91 per share. By that measure, the company beat the mean analyst estimate of $0.89. It missed the average revenue estimate of $816.93 million.

Quoting Management: James A.C. Kennedy, the company’s chief executive officer and president, commented: “U.S. equity markets started the year strongly, as enhanced confidence in the U.S. economy offset ongoing eurozone concerns and tighter U.S. fiscal policy. Non-U.S. developed equity markets were more subdued, while returns for U.S. bonds were generally flat amid the growing appetite for riskier assets. Overall, the aggregate market appreciation, combined with net cash inflows, boosted the firm’s ending and quarterly average assets under management to record highs.”

Key Stats (on next page)…

Revenue increased 1.43% from $804.2 million in the previous quarter. EPS increased 3.41% from $0.88 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.94 to a profit $0.96. For the current year, the average estimate has moved up from a profit of $3.81 to a profit of $3.87 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)