T. Rowe Price's Quarterly Earnings Preview: What You Need to Know
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Valued at a market cap of $19.7 billion, T. Rowe Price Group, Inc. (TROW) is a publicly owned investment management company that provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. The Baltimore, Maryland-based company provides a broad array of mutual funds and sub-advisory services and also offers a variety of sophisticated investment planning and guidance tools. It is scheduled to announce its fiscal Q1 earnings for 2025 before the market opens on Friday, May 2.
Ahead of this event, analysts expect this investment management company to report a profit of $2.10 per share, down 11.8% from $2.38 per share in the year-ago quarter. The company has topped Wall Street's earnings estimates in three of the last four quarters, while missing on another occasion. In Q4 2024, TROW’s EPS of $2.12 fell short of the forecasted figure by 4.9%.
For fiscal 2025, analysts expect TROW to report a profit of $8.45 per share, down 9.4% from $9.33 in fiscal 2024. Nonetheless, its EPS is expected to rebound in fiscal 2026, growing by 4.4% year over year to $8.82.
Shares of TROW have declined 24.6% over the past 52 weeks, considerably lagging behind both the S&P 500 Index's ($SPX) 3.2% rise, and the Financial Select Sector SPDR Fund’s (XLF) almost 15% uptick over the same time frame.
On Feb. 5, TROW’s shares fell 4.2% after its weaker-than-expected Q4 earnings release. The company reported revenue of $1.8 billion, up 11.1% from the year-ago quarter, driven by a 16.1% increase in investment advisory fees. However, the top-line figure fell short of the consensus estimates by 3.2%, primarily due to a drop in performance-based advisory fees and a notable decline in capital allocation-based income. Moreover, its adjusted EPS advanced almost 23.3% year-over-year to $2.12 but also missed analysts’ expectations by 4.9%.
Wall Street analysts are moderately bearish about TROW’s stock, with a "Moderate Sell" rating overall. Among 14 analysts covering the stock, eight recommend "Hold," one suggests a “Moderate Sell,” and five advise “Strong Sell” rating. The mean price target for TROW is $96.28, which indicates an 8.5% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.