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T. Rowe Price Group, Inc. TROW is scheduled to report first-quarter 2025 results on May 2, before the opening bell. The company’s quarterly earnings are expected to have declined, while revenues are likely to have witnessed an improvement from the year-ago reported level.
In the last reported quarter, TROW’s earnings lagged the Zacks Consensus Estimate. The company's results were affected by higher expenses. Nonetheless, net revenues were supported by a rise in assets under management (AUM). Appreciation in cash and cash equivalents will help the company continue investing.
T. Rowe Price’s earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters and missed once, the average surprise being 5.71%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
T. Rowe Price Group, Inc. Price and EPS Surprise
T. Rowe Price Group, Inc. price-eps-surprise | T. Rowe Price Group, Inc. Quote
Key Factors & Estimates for TROW in Q1
In the January-March quarter, the S&P 500 Index fell 2.7%, indicating choppy market performance. The fixed-income market saw positive flow trends, with solid returns across funds. However, equity markets lagged the fixed-income performance. As a result, asset managers’ performances for the March-end quarter are likely to have benefited from strong fixed-income returns. However, weaker equity markets are likely to have partially offset these gains.
Amid the challenging operating environment, T. Rowe Price is likely to have continued to record net outflows in the first quarter. Per the company’s monthly metrics data, its net outflows were $8.6 billion for the quarter ended March 31, 2025.
The company’s preliminary AUM of $1.57 trillion as of March 31, 2025, decreased 2.6% from Dec. 31, 2024, due to a decline in the Equity market performance.
The Zacks Consensus Estimate for total AUM is pegged at $1.61 trillion, indicating a marginal sequential increase. Our estimate for the same is pinned at $1.69 billion.
The Zacks Consensus Estimate for investment advisory fees is pegged at $1.61 billion, suggesting a decline of 3.7% on a sequential basis. Our estimate for the same is pegged at $1.63 billion.
The consensus estimate for administrative, distribution and servicing fees of $142.5 million implies a slight decrease from the prior quarter’s actual. Our estimate for the metric is pegged at $148 million.
Coming to expenses, T. Rowe Price incurs significant expenditure to attract investment advisory clients and additional investments from existing clients. Also, the company invests substantially in upgrading technology to align with changing customer needs. Thus, overall expenses are expected to have risen in the quarter under review, impeding bottom-line growth.