T. Rowe Price Group, Inc. Second Quarter Earnings Preview

S&P 500 (NYSE:SPY) component T. Rowe Price Group, Inc. (NASDAQ:TROW) will unveil its latest earnings on Tuesday, July 26, 2011. T. Rowe Price Group, a financial services holding company, provides investment advisory services to individual and institutional investors in the sponsored mutual funds and other investment portfolios. BlackRock Earnings Cheat Sheet: Profits Climb By Double Figures Again>>

T. Rowe Price Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 77 cents per share, a rise of 30.5% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 80 cents. Between one and three months ago, the average estimate moved down and dropped from 78 cents during the last month. For the year, analysts are projecting net income of $3.15 per share, a rise of 24.5% from last year.

Past Earnings Performance: The company missed estimates last quarter after beating forecasts in the prior two. In the first quarter, the company reported profit of 72 cents per share versus a mean estimate of net income of 75 cents per share. In fourth quarter of the last fiscal year, the company beat estimates by 3 cents.

Savvy Investing Tip: Our CHEAT SHEET investing framework recommends only stocks with two straight quarters of earnings growth. Learn More >>

Wall St. Revenue Expectations: On average, analysts predict $711.2 million in revenue this quarter, a rise of 23.2% from the year ago quarter. Analysts are forecasting total revenue of $2.88 billion for the year, a rise of 21.5% from last year’s revenue of $2.37 billion.

Analyst Ratings: Analysts seem relatively indifferent about T. Rowe Price Group with 11 of 18 analysts surveyed maintaining a hold rating.

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 52.7%, with the biggest boost coming in the most recent quarter when revenue rose more than twofold from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 27.2% while it rose 25.6% in the fourth quarter of the last fiscal year and 27.2% in the third quarter of the last fiscal year.

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 April 25, 2011 to July 20, 2011, the stock price had fallen $5.18 (-8.2%) from $62.97 to $57.79. The stock price saw one of its best stretches over the last year between October 27, 2010 and November 5, 2010 when shares rose for eight-straight days, rising 11.1% (+$5.97) over that span. It saw one of its worst periods between April 27, 2011 and May 5, 2011 when shares fell for seven-straight days, falling 3.8% (-$2.45) over that span. Shares are down $6.10 (-9.5%) year to date.

(Source: Xignite Financials)

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