T. Rowe Price Group
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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.