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T. Rowe Price Group, Inc. (TROW - Free Report) has reported second-quarter 2024 adjusted earnings per share of $2.26, which beat the Zacks Consensus Estimate of $2.25. Also, the bottom line increased 11.9% year over year.
TROW's net revenues were supported by a rise in assets under management (AUM). Further, appreciation in cash and cash equivalents will help the company to continue investing. However, a rise in expenses was a woe.
Net income attributable to T. Rowe Price (on a GAAP basis) was $483.4 million, which increased 1.5% year over year.
Revenues & Expenses Increase
Net revenues in the second quarter increased 7.6% year over year to $1.73 billion. However, the top line missed the Zacks Consensus Estimate of $1.79 billion.
Investment advisory fees increased 10.8% year over year to $1.59 billion. Our estimate for investment advisory fees was $1.54 billion.
Capital allocation-based income plunged significantly to $0.1 million from $38.7 million in the prior-year quarter. The fall was primarily due to the result of overall lower market returns. Our estimate for capital allocation-based income was $65.2 million.
Total operating expenses increased 8.5% to $1.17 billion in the reported quarter. Our estimate for the metric was $1.23 billion.
As of Jun 30, 2024, T. Rowe Price employed 7,929 associates, up 0.3% year over year.
AUM Rises, Liquidity Position Strong
As of Jun 30, 2024, the total AUM grew 12.1% year over year to $1.57 trillion. Our projection was $1.58 billion.
In the second quarter, net market appreciation and income of $30.6 billion positively impacted TROW’s AUM. However, net cash outflows were $3.7 billion.
The company had substantial liquidity, including cash and cash equivalents of $2.71 billion as of Jun 30, 2024, up from $2.06 billion as of Dec 31, 2023. This will enable TROW to keep investing.
Our View
TROW’s solid AUM balance, broadening distribution reach and efforts to diversify business through acquisitions are likely to support the top-line growth. Solid liquidity aids sustainable capital distributions. However, an elevated expense base will likely hinder bottom-line growth.
T. Rowe Price Group, Inc. Price, Consensus and EPS Surprise
BlackRock’s (BLK - Free Report) second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflects a rise of 12% from the year-ago quarter.
The results benefited from a rise in revenues. AUM witnessed solid improvement driven by net inflows and market appreciation. However, BLK’s higher expenses and a fall in non-operating income acted as headwinds.
Artisan Partners Asset Management Inc. (APAM - Free Report) reported second-quarter 2024 adjusted net income per adjusted share of 82 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line, however, increased 15% from the prior-year quarter.
Results were adversely affected by the declining AUM balance, along with the rising operating costs. Nonetheless, an increase in APAM’s Global Funds and Separate accounts resulted in top-line growth. Also, the balance sheet position improved in the reported quarter.
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T. Rowe Price (TROW) Q2 Earnings Beat Estimates, AUM Rises Y/Y
T. Rowe Price Group, Inc. (TROW - Free Report) has reported second-quarter 2024 adjusted earnings per share of $2.26, which beat the Zacks Consensus Estimate of $2.25. Also, the bottom line increased 11.9% year over year.
TROW's net revenues were supported by a rise in assets under management (AUM). Further, appreciation in cash and cash equivalents will help the company to continue investing. However, a rise in expenses was a woe.
Net income attributable to T. Rowe Price (on a GAAP basis) was $483.4 million, which increased 1.5% year over year.
Revenues & Expenses Increase
Net revenues in the second quarter increased 7.6% year over year to $1.73 billion. However, the top line missed the Zacks Consensus Estimate of $1.79 billion.
Investment advisory fees increased 10.8% year over year to $1.59 billion. Our estimate for investment advisory fees was $1.54 billion.
Capital allocation-based income plunged significantly to $0.1 million from $38.7 million in the prior-year quarter. The fall was primarily due to the result of overall lower market returns. Our estimate for capital allocation-based income was $65.2 million.
Total operating expenses increased 8.5% to $1.17 billion in the reported quarter. Our estimate for the metric was $1.23 billion.
As of Jun 30, 2024, T. Rowe Price employed 7,929 associates, up 0.3% year over year.
AUM Rises, Liquidity Position Strong
As of Jun 30, 2024, the total AUM grew 12.1% year over year to $1.57 trillion. Our projection was $1.58 billion.
In the second quarter, net market appreciation and income of $30.6 billion positively impacted TROW’s AUM. However, net cash outflows were $3.7 billion.
The company had substantial liquidity, including cash and cash equivalents of $2.71 billion as of Jun 30, 2024, up from $2.06 billion as of Dec 31, 2023. This will enable TROW to keep investing.
Our View
TROW’s solid AUM balance, broadening distribution reach and efforts to diversify business through acquisitions are likely to support the top-line growth. Solid liquidity aids sustainable capital distributions. However, an elevated expense base will likely hinder bottom-line growth.
T. Rowe Price Group, Inc. Price, Consensus and EPS Surprise
T. Rowe Price Group, Inc. price-consensus-eps-surprise-chart | T. Rowe Price Group, Inc. Quote
Currently, TROW carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Asset Managers
BlackRock’s (BLK - Free Report) second-quarter 2024 adjusted earnings of $10.36 per share handily surpassed the Zacks Consensus Estimate of $9.96. The figure reflects a rise of 12% from the year-ago quarter.
The results benefited from a rise in revenues. AUM witnessed solid improvement driven by net inflows and market appreciation. However, BLK’s higher expenses and a fall in non-operating income acted as headwinds.
Artisan Partners Asset Management Inc. (APAM - Free Report) reported second-quarter 2024 adjusted net income per adjusted share of 82 cents, missing the Zacks Consensus Estimate of 87 cents. The bottom line, however, increased 15% from the prior-year quarter.
Results were adversely affected by the declining AUM balance, along with the rising operating costs. Nonetheless, an increase in APAM’s Global Funds and Separate accounts resulted in top-line growth. Also, the balance sheet position improved in the reported quarter.