The 10-second takeaway
For the quarter ended March 31 (Q1), T. Rowe Price Group, Inc. (NASDAQ:TROW) met expectations on revenues and beat slightly on earnings per share.
Compared to the prior-year quarter, revenue increased. GAAP earnings per share grew significantly.
Margins grew across the board.
Revenue details
T. Rowe Price Group, Inc. (NASDAQ:TROW) recorded revenue of $815.7 million. The 14 analysts polled by S&P Capital IQ anticipated a top line of $817.9 million on the same basis. GAAP reported sales were 12% higher than the prior-year quarter’s $728.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS details
EPS came in at $0.91. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.89 per share. GAAP EPS of $0.91 for Q1 were 21% higher than the prior-year quarter’s $0.75 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
Margin details
For the quarter, gross margin was 62.6%, 140 basis points better than the prior-year quarter. Operating margin was 45.7%, 230 basis points better than the prior-year quarter. Net margin was 29.7%, 260 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Looking ahead
Next quarter’s average estimate for revenue is $857.7 million. On the bottom line, the average EPS estimate is $0.96.
Next year’s average estimate for revenue is $3.47 billion. The average EPS estimate is $3.88.
Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 376 members out of 405 rating the stock outperform, and 29 members rating it underperform. Among 124 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give T. Rowe Price Group, Inc. (NASDAQ:TROW) a green thumbs-up, and five give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on T. Rowe Price Group, Inc. (NASDAQ:TROW) is outperform, with an average price target of $72.10.
The article T. Rowe Price Group Beats Analyst Estimates on EPS originally appeared on Fool.com and is written by Seth Jayson.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned.
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