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The headline numbers for T. Rowe (TROW) give insight into how the company performed in the quarter ended March 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
A rise in revenues and higher AUM balance support TROW's Q1 earnings, driving the stock higher in pre-market trading.
T. Rowe Price Group, Inc. (NASDAQ:TROW ) Q1 2025 Earnings Conference Call May 2, 2025 8:00 AM ET Company Participants Linsley Carruth - Director of IR Rob Sharps - Chair, CEO and President Jen Dardis - CFO Eric Veiel - Head of Global Investments Conference Call Participants Michael Cyprys - Morgan Stanley Benjamin Budish - Barclays Capital Craig Seigenthaler - Bank of America Dan Fannon - Jefferies Bill Katz - TD Cowen Alexander Blostein - Goldman Sachs Ken Worthington - JPMorgan Mike Brown - Wells Fargo Securities Operator Good morning. My name is Daniel and I will be your conference facilitator today.
T. Rowe Price (TROW) came out with quarterly earnings of $2.23 per share, beating the Zacks Consensus Estimate of $2.09 per share. This compares to earnings of $2.38 per share a year ago.
T. Rowe Price has faced 13 consecutive quarters of net AUM outflows, significantly impacting its stock price and long-term growth prospects. Despite strong financial health, including no long-term debt and a robust dividend track record, the persistent AUM outflows hinder stock price recovery. Management's efforts to launch low-cost ETFs are promising but face stiff competition and may not quickly reverse the negative AUM trend.
Beyond analysts' top -and-bottom-line estimates for T. Rowe (TROW), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.
T. Rowe Price Group has faced significant challenges, including declining AUM and net outflows for 13 quarters, impacting investor confidence and market sentiment. Despite these headwinds, TROW offers a compelling investment opportunity with a 5.67% dividend yield and a low payout ratio, suggesting potential for future dividend growth. TROW is actively addressing its challenges by expanding its ETF offerings, entering the insurance asset management space, and leveraging technology to drive organic growth.
T. Rowe Price (TROW) closed at $88.44 in the latest trading session, marking a -1.21% move from the prior day.
T. Rowe (TROW) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.