T. Rowe Price Group, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component T. Rowe Price Group, Inc. (NASDAQ:TROW) will unveil its latest earnings on Tuesday, October 25, 2011. 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 net income of 74 cents per share, a rise of 13.8% 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 81 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 78 cents during the last month. For the year, analysts are projecting profit of $2.93 per share, a rise of 15.8% from last year.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting net income of 76 cents per share against an estimate of profit of 77 cents per share. The quarter before that, it missed forecasts by 3 cents.

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Wall St. Revenue Expectations: On average, analysts predict $695.2 million in revenue this quarter, a rise of 18.6% from the year ago quarter. Analysts are forecasting total revenue of $2.75 billion for the year, a rise of 16% from last year’s revenue of $2.37 billion.

Analyst Ratings: Analysts seem relatively indifferent about T. Rowe Price Group with 10 of 16 analysts surveyed maintaining a hold rating.

A Look Back: In the second quarter, profit rose 29.1% to $204.7 million (76 cents a share) from $158.5 million (59 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 22.8% to $713.7 million from $581.3 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 51.1%, 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 27.2% in the first quarter and 25.6% in the fourth 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 July 26, 2011 to October 19, 2011, the stock price had fallen $6.99 (-11.7%) from $59.68 to $52.69. 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% (+$5.94) 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% (-$2.44) over that span. Shares are down $10.80 (-17%) year to date.

(Source: Xignite Financials)

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