In This Article:
T. Rowe Price Group, Inc. TROW is scheduled to report fourth-quarter 2024 results on Feb. 5, before the opening bell. The company’s quarterly revenues and earnings are expected to have witnessed improvements from the year-ago reported levels.
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In the last reported quarter, TROW’s earnings surpassed the Zacks Consensus Estimate. A rise in its assets under management (AUM) supported net revenues.
T. Rowe Price’s earnings outpaced the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 8.81%.
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 Q4
In the October-December quarter, the S&P 500 Index rose 2.4%, indicating favorable 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 December-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 third quarter. Per the company’s monthly metrics data, its net outflows were $10.9 billion for the quarter ended Dec. 31, 2024.
The company’s preliminary AUM of $1.61 trillion as of Dec. 31, 2024, decreased 3.6% from Sept. 30, 2024, due to a decline in the Equity market performance.
The Zacks Consensus Estimate for total AUM is pegged at $1.64 trillion, indicating a 3.2% sequential increase. Our estimate for the same is pinned at $1.71 billion.
The Zacks Consensus Estimate for investment advisory fees is pegged at $1.68 billion, suggesting a decline of 2.9% on a sequential basis. Our estimate for the same is pegged at $1.67 billion.
The consensus estimate for administrative, distribution and servicing fees of $154 million implies a 4.1% increase from the prior quarter’s actual. Our estimate for the metric is pegged at $151.7 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.