Markets

T. Rowe Price (TROW) Q4 Earnings Lag on Higher Expenses

Have you been eager to see how T. Rowe Price Group, Inc.TROW performed in Q4 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 $1.21, significantly lagging the Zacks Consensus Estimate of $1.41. Adjusted 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 optimism prior to the earnings release. The Zacks Consensus Estimate increased around 1.4% over the last 7 days.

However, T. Rowe Price has a decent earnings surprise history. Before posting earnings miss in Q4, the company delivered positive surprises in three out of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.6% in the trailing four quarters.

T. Rowe Price Group, Inc. Price and EPS Surprise

T. Rowe Price Group, Inc. Price and EPS Surprise | T. Rowe Price Group, Inc. Quote

Revenue Came Lower Than Expected

T. Rowe Price posted revenues of $1.09 billion, missing the Zacks Consensus Estimate of $1.10 billion. Revenues compared favorably with the year-ago number of $1.05 billion.

Key Stats to Note:

  • Assets under management increased to $810.8 billion
  • Net revenues depicted 3.7% year-over-year growth
  • nvestment advisory fees constituted 89% of net revenues

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) 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 Rank (Strong Buy) stocks here. )

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

Zacks' Best Private Investment Ideas

While we are happy to share many articles like this on the website, our best recommendations and most in-depth research are not available to the public.

Starting today, for the next month, you can follow all Zacks' private buys and sells in real time. Our experts cover all kinds of trades… from value to momentum . . . from stocks under $10 to ETF and option moves . . . from stocks that corporate insiders are buying up to companies that are about to report positive earnings surprises. You can even look inside exclusive portfolios that are normally closed to new investors. Click here for Zacks' private trades >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

T. Rowe Price Group, Inc. (TROW): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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.

In This Story

TROW

Other Topics

Earnings Investing Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More