Have you been eager to see how T. Rowe Price Group, Inc. (NASDAQ:TROW) performed in Q3 in comparison with the market expectations? Let’s quickly scan through the key facts from this MD-based popular asset management firm’s earnings release this morning:
An Earnings Miss
T. Rowe Price came out with adjusted earnings per share of $1.17, missing the Zacks Consensus Estimate of $1.20.
Higher expenses were largely responsible for earnings miss.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for T. Rowe Price remained stable prior to the earnings release. The Zacks Consensus Estimate of $1.20 per share has remained unchanged over the last 7 days.
Notably, T. Rowe Price has a decent earnings surprise history. Before posting earnings miss in Q3, the company delivered positive surprises in three out of the prior four quarters. Moreover, the company outpaced the Zacks Consensus Estimate by an average of 3.47% in the trailing four quarters.
Revenue Came Higher Than Expected
T. Rowe Price posted revenues of $1.09 billion, surpassing the Zacks Consensus Estimate of $1.07 billion. Also, revenues compared favorably with the year-ago number of $1.05 billion.
Key Stats to Note:
Assets under management increased 12% year over year to $812.9 billion.
Net income available to common shareholders (on GAAP basis) increased 18% year-over-year to $327.8 billion.
Investment advisory fees constituted 88.8% of net revenues.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) for T. Rowe Price. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.
(You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.)
Check back later for our full write up on this T. Rowe Price earnings report!
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T ROWE PRICE (TROW): Free Stock Analysis Report
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