Despite a more difficult investment climate of late, investors looking to get the most return from their hard-earned dollars continue to rely on the guidance of T. Rowe Price
For the second quarter, T. Rowe Price posted a gain in net income of 28% to $102.7 million, or $0.76 per share, topping the average analyst estimates. The company's revenue jumped 17% to $363.5 million.
Although operating expenses were up significantly, increasing 15% to $208 million, the biggest expense was for compensation and related costs. How bad can business really be when your staff increases approximately 3% in the first half of the year?
The company also remains debt-free, with cash and net liquid investments of $700 million. It has also repurchased 1.3 million common shares this year.
With baby boomers continuing to invest to ensure a satisfying retirement, and the younger generation realizing Social Security can't be counted on for much, if anything, individuals will continue to turn to investment companies like T. Rowe Price, Legg Mason
Fool contributor Mike Cianciolo welcomes feedback and doesn't own shares of T. Rowe Price.