T. Rowe Price Group
The 10-second takeaway
For the quarter ended June 30 (Q2), T. Rowe Price Group met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share grew significantly.
Margins increased across the board.
T. Rowe Price Group logged revenue of $854.3 million. The 15 analysts polled by S&P Capital IQ predicted revenue of $856.1 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $736.8 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 $0.92. The 21 earnings estimates compiled by S&P Capital IQ anticipated $0.95 per share. GAAP EPS of $0.92 for Q2 were 16% higher than the prior-year quarter's $0.79 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 63.0%, 170 basis points better than the prior-year quarter. Operating margin was 46.7%, 220 basis points better than the prior-year quarter. Net margin was 29.0%, 90 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $874.1 million. On the bottom line, the average EPS estimate is $0.99.
Next year's average estimate for revenue is $3.44 billion. The average EPS estimate is $3.85.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 375 members out of 404 rating the stock outperform, and 29 members rating it underperform. Among 128 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 123 give T. Rowe Price Group a green thumbs-up, and five 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 $78.66.
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