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Baltimore, Maryland-based T. Rowe Price Group, Inc. (TROW) is a publicly owned investment manager that provides its services to individuals, institutional investors, retirement plans, financial intermediaries, and institutions. Valued at $24.3 billion by market cap, the company provides investment advisory services and manages a broad range of U.S. and international stock, blended asset, bond, and money market mutual funds and other investment portfolios. The leading asset management firm is expected to announce its fiscal third-quarter earnings for 2024 before the market opens on Friday, Nov. 1.
Ahead of the event, analysts expect TROW to report a profit of $2.32 per share on a diluted basis, up 6.9% from $2.17 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect TROW to report EPS of $9.04, up 19.1% from $7.59 in fiscal 2023. Its EPS is expected to rise marginally year over year to $9.08 in fiscal 2025.
TROW stock has underperformed the S&P 500’s ($SPX) 22.9% gains on a YTD basis, with shares up 1.9% during this period. Similarly, it underperformed the Financial Select Sector SPDR Fund’s (XLF) 24.5% gains over the same time frame.
TROW has been impacted by the growing trend of low-cost, passively managed funds, leading to increased competition and market share challenges for the company's active management strategies.
On Jul. 26, TROW shares closed down more than 2% after reporting its Q2 results. Its adjusted EPS of $2.26 beat Wall Street expectations of $2.25. The company’s revenue was $1.7 billion, missing Wall Street forecasts of $1.8 billion.
Analysts’ consensus opinion on TROW stock is reasonably bearish, with a “Moderate Sell” rating overall. Out of 15 analysts covering the stock, nine give a “Hold” rating, one advises a “Moderate Sell” rating, and five recommend a “Strong Sell.” While TROW currently trades above its mean price target of $109.57, the Street-high price target of $125 suggests an upside potential of 14%.
On the date of publication, Neha Panjwani 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. For more information please view the Barchart Disclosure Policy here.
