T. Rowe Price Q2 Profit Jumps 25% to $632M Despite Revenue Slump
TROW sits 40% above its 52-week low of $85.22.
Summary
T. Rowe Price delivered a strong Q2 earnings beat with GAAP EPS of $2.88, up 29% from $2.24 a year ago, driven by record AUM of $1.9 trillion. Adjusted EPS came in at $2.57. Revenue fell 36% to $1.097 billion, but the bottom-line surge reflects effective cost management and market gains. This follows the 8-K filed earlier today confirming the record AUM and net outflows of $6.5 billion. The stock is trading near its 52-week high of $122, suggesting the market had already priced in much of the positive momentum. The key question now is whether the revenue decline signals fee pressure that could weigh on future quarters.
At the time of this announcement, TROW was trading at $119.28 on NASDAQ in the Finance sector, with a market capitalization of approximately $25.6B. The 52-week trading range was $85.22 to $122.00. This news item was assessed with positive market sentiment and an importance score of 8 out of 10. Source: dpa-AFX.