T. Rowe Price Group (NASDAQ:TROW) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Key Points

• Adjusted EPS $2.52 beat estimates by $0.08 while revenue was $1.86B (slightly below expectations); the company repurchased $340M of stock and raised the quarterly dividend to $1.30, backed by about $4.1B in cash and discretionary investments.
• The firm recorded $13.7B of net outflows in Q1—primarily from equities and mutual fund redemptions with weak one‑year performance—while ETFs surpassed $25B AUM with $2.8B of net inflows and alternatives (OHA) scaled to $112B AUM.
• Shares rose roughly 2.4% to $102.88 after the results, but analysts have trimmed targets and the consensus rating is Reduce with a consensus target near $96.46.

T. Rowe Price Group (NASDAQ:TROW - Get Free Report) announced its quarterly earnings results on Thursday. The asset manager reported $2.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.44 by $0.08, FiscalAI reports. T. Rowe Price Group had a net margin of 28.53% and a return on equity of 20.29%. The company had revenue of $1.86 billion for the quarter, compared to analysts' expectations of $1.88 billion. During the same quarter in the previous year, the company earned $2.23 earnings per share. T. Rowe Price Group's quarterly revenue was up 5.3% on a year-over-year basis.

Here are the key takeaways from T. Rowe Price Group's conference call:

• Adjusted EPS of $2.52 rose 13% year-over-year, the company repurchased $340M of stock in Q1 and raised the quarterly dividend to $1.30, supported by a strong balance sheet with ~$4.1B of cash and discretionary investments.
• The firm reported $13.7B of net outflows in Q1, driven largely by equities and mutual fund redemptions (notably U.S. growth strategies), and one-year performance remains challenged across several products.
• Distribution and product initiatives gained traction—ETFs surpassed $25B AUM with $2.8B net inflows (32 ETFs), SMAs reached ~$17B with ~$962M net inflows, and launches/expansions (Europe, interval funds, CLO) are underway.
• Long-term investment performance is largely strong on an asset-weighted basis (notably 3-, 5-, and 10‑year periods), but short‑term (1‑year) performance lags, especially for certain equity strategies.
• Alternatives arm OHA is scaling—$112B AUM, ~ $30B dry powder, record fundraising momentum and institutional demand—and management views current spread widening as an opportunity to deploy capital across private credit and structured credit products.

T. Rowe Price Group Stock Up 2.4%

Shares of NASDAQ TROW traded up $2.41 during midday trading on Thursday, hitting $102.88. The stock had a trading volume of 4,390,267 shares, compared to its average volume of 1,924,674. The business's 50 day moving average is $92.87 and its 200-day moving average is $99.28. The company has a market cap of $22.39 billion, a P/E ratio of 11.12, a PEG ratio of 4.40 and a beta of 1.50. T. Rowe Price Group has a 52 week low of $85.22 and a 52 week high of $118.22.

T. Rowe Price Group Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Monday, March 30th. Stockholders of record on Monday, March 16th were paid a $1.30 dividend. This is a boost from T. Rowe Price Group's previous quarterly dividend of $1.27. This represents a $5.20 annualized dividend and a dividend yield of 5.1%. The ex-dividend date was Monday, March 16th. T. Rowe Price Group's payout ratio is currently 56.22%.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. DV Equities LLC bought a new position in T. Rowe Price Group during the fourth quarter valued at approximately $32,000. Quarry LP bought a new position in T. Rowe Price Group in the third quarter worth approximately $61,000. MUFG Securities EMEA plc bought a new position in T. Rowe Price Group in the second quarter worth approximately $63,000. Quadrant Capital Group LLC bought a new position in T. Rowe Price Group in the third quarter worth approximately $96,000. Finally, Geneos Wealth Management Inc. raised its position in T. Rowe Price Group by 22.5% in the second quarter. Geneos Wealth Management Inc. now owns 1,181 shares of the asset manager's stock worth $114,000 after acquiring an additional 217 shares during the period. Institutional investors own 73.39% of the company's stock.

Analysts Set New Price Targets

TROW has been the topic of several research analyst reports. BMO Capital Markets reduced their price target on shares of T. Rowe Price Group from $104.00 to $98.00 and set a "market perform" rating on the stock in a research report on Friday, April 10th. Keefe, Bruyette & Woods reduced their price target on shares of T. Rowe Price Group from $110.00 to $95.00 and set a "market perform" rating on the stock in a research report on Wednesday, April 8th. Deutsche Bank Aktiengesellschaft reduced their price target on shares of T. Rowe Price Group from $106.00 to $100.00 and set a "hold" rating on the stock in a research report on Thursday, February 5th. Zacks Research cut shares of T. Rowe Price Group from a "hold" rating to a "strong sell" rating in a research report on Tuesday, April 14th. Finally, Evercore reduced their price target on shares of T. Rowe Price Group from $99.00 to $96.00 in a research report on Friday, April 10th. Ten investment analysts have rated the stock with a Hold rating and five have assigned a Sell rating to the stock. According to MarketBeat.com, T. Rowe Price Group presently has a consensus rating of "Reduce" and a consensus target price of $96.46.

About T. Rowe Price Group

T. Rowe Price Group, Inc is a global investment management firm headquartered in Baltimore, Maryland, founded by Thomas Rowe Price Jr. in 1937. The company provides a broad range of investment products and services for individual investors, financial intermediaries, retirement plan sponsors and institutional clients. Its offerings are built around active investment management and in-house research across equity, fixed income and multi-asset strategies, reflecting a long history as a research-driven asset manager.

The firm's product lineup includes mutual funds, separate accounts, collective investment trusts, target-date and target-risk funds, and managed account solutions, as well as services for defined contribution and defined benefit retirement plans.

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