T. Rowe Price Group (Nasdaq: TROW ) is expected to report Q4 earnings on Jan. 29. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict T. Rowe Price Group's revenues will increase 19.1% and EPS will expand 21.9%.
The average estimate for revenue is $800.1 million. On the bottom line, the average EPS estimate is $0.89.
Last quarter, T. Rowe Price Group booked revenue of $769.7 million. GAAP reported sales were 13% higher than the prior-year quarter's $679.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, non-GAAP EPS came in at $0.87. GAAP EPS of $0.94 for Q3 were 32% higher than the prior-year quarter's $0.71 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 62.6%, 270 basis points better than the prior-year quarter. Operating margin was 46.6%, 310 basis points better than the prior-year quarter. Net margin was 32.1%, 480 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $3.04 billion. The average EPS estimate is $3.36.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 374 members out of 402 rating the stock outperform, and 28 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give T. Rowe Price Group a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on T. Rowe Price Group is outperform, with an average price target of $65.53.
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