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T. Rowe (TROW) Reports Q3 Earnings: What Key Metrics Have to Say

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For the quarter ended September 2023, T. Rowe Price (TROW - Free Report) reported revenue of $1.67 billion, up 5.2% over the same period last year. EPS came in at $2.17, compared to $1.86 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $1.64 billion, representing a surprise of +2.06%. The company delivered an EPS surprise of +23.30%, with the consensus EPS estimate being $1.76.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how T. Rowe performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Assets Under Management - Total: $1,346.5 billion compared to the $1,350.07 billion average estimate based on three analysts.
  • Assets Under Management (EOP) - Multi-asset: $440.5 billion versus $440.19 billion estimated by two analysts on average.
  • Net cash inflows - Total: $-17.4 billion versus $-17.41 billion estimated by two analysts on average.
  • Assets Under Management (EOP) - Fixed income, including money market: $169.3 billion compared to the $169.06 billion average estimate based on two analysts.
  • Assets Under Management (EOP) - Equity: $690 billion versus $690 billion estimated by two analysts on average.
  • Assets Under Management (EOP) - Alternatives: $46.7 billion compared to the $46.83 billion average estimate based on two analysts.
  • Net revenues- Capital allocation-based income: $66.10 million versus the four-analyst average estimate of $20.77 million.
  • Net revenues- Administrative, distribution and servicing fees: $140.70 million versus $140.66 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a -3% change.
  • Net revenues- Investment advisory fees: $1.46 billion versus the three-analyst average estimate of $1.48 billion. The reported number represents a year-over-year change of +1.5%.
View all Key Company Metrics for T. Rowe here>>>

Shares of T. Rowe have returned -10.9% over the past month versus the Zacks S&P 500 composite's -2.7% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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