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T. Rowe Price (TROW) Q3 Earnings Miss on Higher Expenses

Have you been eager to see how T. Rowe Price Group, Inc.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 earnings per share of $1.06, missing the Zacks Consensus Estimate of $1.14. Higher expenses were primarily responsible for this earnings miss.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for T. Rowe Price depicted pessimism prior to the earnings release. The Zacks Consensus Estimate moved down around 1% over the last 7 days.

However, T. Rowe Price has a decent earnings surprise history. Before posting earnings miss in Q3, the company delivered positive surprises in two out of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 0.85% in the trailing four quarters.

Revenue Came In As Expected

T. Rowe Price posted revenues of $1.05 billion, almost in line with the Zacks Consensus Estimate. Revenues compared favorably with the year-ago number of $1.02 billion.

Key Stats to Note:

  • Assets under management decreased to $725.5 billion
  • Net revenues depicted 3% year-over-year growth
  • Investment advisory fees constituted 88% of net revenues

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #4 (Sell) 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.

Check back later for our full write up on this T. Rowe Price earnings report!

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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