T Rowe Price Earnings on Deck

S&P 500 (NYSE:SPY) component T Rowe Price (NASDAQ:TROW) will unveil its latest earnings on Wednesday, October 24, 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 83 cents per share, a rise of 16.9% 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 84 cents. Between one and three months ago, the average estimate moved down. It has risen from 82 cents during the last month. Analysts are projecting profit to rise by 11.3% compared to last year’s $3.25.

Past Earnings Performance: The company is looking to top analyst estimates this quarter after trailing for the two previous quarters. Last quarter, it missed estimates by reporting net income of 79 cents per share against an estimate of profit of 81 cents per share. The quarter before that, it missed expectations by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $765.7 million in revenue this quarter, a rise of 12.7% from the year-ago quarter. Analysts are forecasting total revenue of $3.03 billion for the year, a rise of 10.2% from last year’s revenue of $2.75 billion.

Stock Price Performance: Between July 25, 2012 and October 18, 2012, the stock price rose $7.44 (12.6%), from $58.97 to $66.41. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 6.2% (+$3.71) over that span. It saw one of its worst periods between April 26, 2012 and May 9, 2012 when shares fell for 10 straight days, dropping 5.8% (-$3.67) over that span.

Analyst Ratings: There are mostly holds on the stock with 11 of 21 analysts surveyed giving that rating.

Key Stats:

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 2.6% for the last four quarters.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 46.4% in the first quarter after increasing in the second quarter.

A Look Back: In the second quarter, profit rose 1% to $206.8 million (79 cents a share) from $204.7 million (76 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 3.5% to $744.2 million from $719.3 million.

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

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