T. Rowe Price Group, the Baltimore-based investment-fund manager, announced an 18% increase in net income for the third quarter. Despite client withdrawals from stock funds, the company reported earnings of $442.6 million, or $1.97 per share – up from $375.2 million, or $1.66 per share, in the same period last year.
Excluding certain one-off items, T. Rowe Price achieved adjusted earnings of $2.17 per share, surpassing the Wall Street consensus of $1.71 per share according to FactSet. This exceptional performance demonstrates the company’s ability to navigate through challenging market conditions.
Steady Revenue Growth
Third-quarter revenue climbed 5.2% to $1.67 billion, exceeding the average analyst estimate of $1.65 billion. A significant contributor to this growth was the increase in investment advisory fees, which rose by 1.5% to $1.46 billion.
However, T. Rowe Price experienced net client outflows of $17.4 billion during the three-month period, resulting in quarter-end assets under management of $1.35 trillion. Despite this, President and CEO Rob Sharps remains optimistic and mentioned, “Our flows remain under pressure, with net outflows from equity outweighing the positive net flows to fixed income, multi-asset, and alternatives this quarter.”