T. Rowe Price Group Earnings: Here’s Why Investors Don’t Like These Results

T. Rowe Price Group, Inc. (NASDAQ:TROW) delivered a profit and missed Wall Street’s expectations, AND 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 4.51%.

T. Rowe Price Group, Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 16.46% to $0.92 in the quarter versus EPS of $0.79 in the year-earlier quarter.

Revenue: Rose 14.79% to $854.3 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: T. Rowe Price Group, Inc. reported adjusted EPS income of $0.92 per share. By that measure, the company missed the mean analyst estimate of $0.95. It missed the average revenue estimate of $855.76 million.

Quoting Management: James A.C. Kennedy, the company’s chief executive officer and president, commented: “We remain confident about our positioning and progress. Our overall investment performance remains very strong, especially in our asset allocation portfolios. Despite the outflows we have experienced from certain institutional clients, our ability to win new business and our active pipeline for new institutional accounts remain in line with previous years. We continue to work to deepen our investment teams, to maintain our culture, and to keep our talent. We have also been picking up the pace of investment in technology and distribution, in order to increase our capabilities and broaden our distribution reach.”

Key Stats (on next page)…

Revenue increased 2.43% from $834 million in the previous quarter. EPS increased 1.1% from $0.91 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1 to a profit $0.98. For the current year, the average estimate has moved down from a profit of $3.88 to a profit of $3.84 over the last ninety days.

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