T. Rowe Price Group Inc. Fourth Quarter Earnings Preview

S&P 500 (NYSE:SPY) component T. Rowe Price Group, Inc. (NASDAQ:TROW) will unveil its latest earnings on Friday, January 27, 2012. 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 Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 69 cents per share, a decline of 4.2% 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 68 cents. Between one and three months ago, the average estimate was unchanged. It has risen during the last month. Analysts are projecting profit to rise by 14.2% versus last year to $2.89.

Past Earnings Performance: The company showed net income of 71 cents per share versus a mean estimate of profit of last quarter. This marks the fourth month of falling short of estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 1.7% in revenue from the year-earlier quarter to $658.3 million.

Analyst Ratings: Analysts seem relatively indifferent about T. Rowe Price Group with 12 of 17 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit rose 9.7% to $185.5 million (71 cents a share) from $169.1 million (64 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 14.3% to $680.2 million from $595 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 50.1%, with the biggest boost coming in the first quarter when revenue rose more than twofold from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 29.1% in the second quarter and 27.2% in the first quarter.

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).

Stock Price Performance: During November 22, 2011 to January 23, 2012, the stock price had risen $9.48 (18.7%) from $50.70 to $60.18. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 16, 2011 when shares rose for six-straight days, rising 8% (+$3.89) over that span. It saw one of its worst periods between November 15, 2011 and November 23, 2011 when shares fell for seven-straight days, falling 9.6% (-$5.25) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com

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