Baltimore, Maryland-based T. Rowe Price Group, Inc. (TROW) operates as an asset manager, managing equity and fixed income mutual funds. With a market cap of $22.6 billion, the company has a vast customer base of individuals, institutional investors, retirement plans, financial intermediaries, and institutions.
The asset management firm is gearing up to announce its third-quarter results before the markets open on Friday, Oct. 31. Ahead of the event, analysts expect TROW to deliver a non-GAAP profit of $2.49 per share, down nearly 3.1% from $2.57 per share reported in the year-ago quarter. While the company has missed the Street’s bottom-line estimates once over the past four quarters, it has surpassed the projections on three other occasions.
For the full fiscal 2025, analysts project T. Rowe to deliver a non-GAAP EPS of $9.38, marginally up from $9.33 in fiscal 2024. While in fiscal 2026, its earnings are expected to grow 6.9% year-over-year to $10.03 per share.
TROW stock prices have dropped 6.4% over the past 52 weeks, notably outperforming the Financial Select Sector SPDR Fund’s (XLF) 11.5% gains and the S&P 500 Index’s ($SPX) 16.2% returns during the same time frame.
T. Rowe Price Group’s stock prices inched up 1.6% following the release of its mixed Q2 results on Aug. 1. During the quarter, the company’s asset under management (AUM) increased by $110.5 billion to $1.68 trillion. Meanwhile, due to a drop in equity-based investment advisory fees and performance-based advisory fees, the company’s overall topline dropped by 58 bps year-over-year to $1.7 billion, missing the consensus estimates by a thin margin.
However, T. Rowe’s fixed income, multi-asset, and alternative investment-based fees observed notable upticks. Further, its EPS for the quarter grew 6.2% year-over-year to $2.24, surpassing the street expectations by 4.2%.
Analysts remain cautious about the stock’s prospects. TROW has a consensus “Hold” rating overall. Of the 14 analysts covering the stock, opinions include one “Strong Buy,” eight “Holds,” one “Moderate Sell,” and four “Strong Sells.” As of writing, the stock is trading slightly below its mean price target of $106.92.
On the date of publication, Aditya Sarawgi 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. This article was originally published on Barchart.com
