T. Rowe Price Group Inc. First Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component T. Rowe Price Group, Inc. (NASDAQ:TROW) will unveil its latest earnings on Tuesday, April 24, 2012. T. Rowe Price, a financial services holding company, provides investment advisory services to individual and institutional investors in the sponsored mutual funds and other investment portfolios.

T. Rowe Price Group, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 77 cents per share, a rise of 6.9% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from 72 cents. Between one and three months ago, the average estimate moved up. It has risen from 75 cents during the last month. Analysts are projecting profit to rise by 15.4% versus last year to $3.37.

Past Earnings Performance: Last quarter, the company topped expectations by 4 cents, coming in at net income of 73 cents per share versus a mean estimate of profit of 69 cents per share. This followed two straight quarters of missing estimates.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 4.1% in revenue from the year-earlier quarter to $710.5 million.

Analyst Ratings: Analysts seem relatively indifferent about T. Rowe Price Group with 14 of 18 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit fell 1.7% to $188.4 million (72 cents a share) from $191.6 million (72 cents a share) the year earlier, but exceeded analyst expectations. Revenue rose 3.3% to $684.5 million from $662.9 million.

Key Stats:

After last quarter’s profit drop broke a string of income increases, this earnings announcement is definitely a chance for a rebound. Net income rose 27.2% in the first quarter of the last fiscal year, 29.1% in the second quarter of the last fiscal year and 9.7% in the third quarter of the last fiscal year before declining in the fourth quarter of the last fiscal year.

On the top line, the company is looking to build on four-straight revenue increases heading into this earnings announcement. Revenue rose more than twofold in the first quarter of the last fiscal year, 23.7% in the second quarter of the last fiscal year and 14.4% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year of the last fiscal year.

Stock Price Performance: Between January 23, 2012 and April 18, 2012, the stock price rose $2.59 (4.3%), from $59.85 to $62.44. The stock price saw one of its best stretches over the last year between September 9, 2011 and September 16, 2011, when shares rose for six straight days, increasing 8% (+$3.87) over that span. It saw one of its worst periods between November 15, 2011 and November 23, 2011 when shares fell for seven straight days, dropping 9.6% (-$5.22) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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