T. Rowe Price Group (Nasdaq: TROW ) reported earnings on Jan. 29. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), T. Rowe Price Group missed slightly on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.
Margins expanded across the board.
T. Rowe Price Group booked revenue of $787.3 million. The 16 analysts polled by S&P Capital IQ looked for sales of $799.9 million on the same basis. GAAP reported sales were 17% higher than the prior-year quarter's $672.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.88. The 19 earnings estimates compiled by S&P Capital IQ anticipated $0.88 per share. GAAP EPS of $0.88 for Q4 were 22% higher than the prior-year quarter's $0.72 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 63.5%, 830 basis points better than the prior-year quarter. Operating margin was 45.9%, 210 basis points better than the prior-year quarter. Net margin was 29.5%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $809.6 million. On the bottom line, the average EPS estimate is $0.88.
Next year's average estimate for revenue is $3.41 billion. The average EPS estimate is $3.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 373 members out of 402 rating the stock outperform, and 29 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 120 give T. Rowe Price Group a green thumbs-up, and six 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 $68.85.
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