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Last week, you might have seen that T. Rowe Price Group, Inc. (NASDAQ:TROW) released its annual result to the market. The early response was not positive, with shares down 3.8% to US$111 in the past week. Revenues of US$7.1b were in line with forecasts, although statutory earnings per share (EPS) came in below expectations at US$9.15, missing estimates by 7.1%. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
View our latest analysis for T. Rowe Price Group
Taking into account the latest results, the most recent consensus for T. Rowe Price Group from eleven analysts is for revenues of US$7.40b in 2025. If met, it would imply a credible 4.4% increase on its revenue over the past 12 months. Statutory per-share earnings are expected to be US$9.19, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$7.53b and earnings per share (EPS) of US$9.34 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$111, showing that the business is executing well and in line with expectations. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic T. Rowe Price Group analyst has a price target of US$126 per share, while the most pessimistic values it at US$90.00. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. The analysts are definitely expecting T. Rowe Price Group's growth to accelerate, with the forecast 4.4% annualised growth to the end of 2025 ranking favourably alongside historical growth of 2.2% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 5.9% per year. So it's clear that despite the acceleration in growth, T. Rowe Price Group is expected to grow meaningfully slower than the industry average.