T Rowe Price Second Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component T Rowe Price (NASDAQ:TROW) will unveil its latest earnings on Wednesday, July 25, 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 Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 80 cents per share, a rise of 5.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 83 cents. Between one and three months ago, the average estimate moved down. It also has dropped from 82 cents during the last month. For the year, analysts are projecting profit of $3.27 per share, a rise of 12% from last year.

Past Earnings Performance: Last quarter, the company fell short of estimates by 4 cents, coming in at net income of 75 cents per share against a mean estimate of profit of 77 cents. The company topped expectations in the fourth quarter of the last fiscal year.

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Stock Price Performance: Between May 22, 2012 and July 19, 2012, the stock price had risen $4.60 (7.9%), from $58.10 to $62.70. The stock price saw one of its best stretches over the last year between June 25, 2012 and July 3, 2012, when shares rose for seven straight days, increasing 6.2% (+$3.71) over that span. It saw one of its worst periods between April 26, 2012 and May 9, 2012 when shares fell for 10 straight days, dropping 5.8% (-$3.67) over that span.

Wall St. Revenue Expectations: Analysts predict a rise of 6.6% in revenue from the year-earlier quarter to $761 million.

Analyst Ratings: There are mostly holds on the stock with 11 of 19 analysts surveyed giving that rating.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 23.7% in the second quarter of the last fiscal year, 14.4% in the third quarter of the last fiscal year and 3.3%in the fourth quarter of the last fiscal year before dropping in the first quarter.

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 9.7% for the last four quarters.

A Look Back: In the first quarter, profit rose 1.5% to $197.5 million (75 cents a share) from $194.6 million (72 cents a share) the year earlier, but fell short analyst expectations. Revenue fell 46.4% to $733.8 million from $1.37 billion.

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

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