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T. Rowe Price (TROW) Q2 Earnings Beat on High Revenue
July 25, 2017

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Have you been eager to see how T. Rowe Price Group, Inc. (TROW - Free Report) performed in Q2 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 Beat

T. Rowe Price came out with adjusted earnings per share of $1.28, beating the Zacks Consensus Estimate of $1.27. Higher revenues were primarily responsible for this earnings beat.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for T. Rowe Price depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last 7 days.

However, T. Rowe Price has a disappointing earnings surprise history. Before posting earnings beat in Q2, the company delivered positive surprises in only one quarter out of the prior four quarters. Overall, the company missed the Zacks Consensus Estimate by an average of 4.15% in the trailing four quarters.

Revenue Came In Higher Than Expected    

T. Rowe Price posted revenues of $1.17 billion, beating the Zacks Consensus Estimate of $1.16 billion. Revenues compared favorably with the year-ago number of $1.04 billion as well.

Key Stats to Note:

  • Assets under management increased to $903.6 billion
  • Net revenues depicted 12.1% 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 #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 favorable, it all depends on what sense the just-released report makes to the analysts.

(You can seethe 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!

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