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With a market cap of $21.8 billion, T. Rowe Price Group, Inc. (TROW) is a global investment management firm serving individual and institutional investors. The company offers a wide range of equity and fixed income strategies, mutual funds, and investment advisory services with a disciplined, research-driven, and ESG-conscious approach. T. Rowe Price Group is expected to announce its fiscal Q2 2025 earnings results before the market opens on Friday, Aug. 1.
Ahead of this event, analysts expect the Baltimore, Maryland-based company to report an adjusted EPS of $1.99, down nearly 12% from $2.26 in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q1 2025, TROW exceeded the consensus adjusted EPS estimate by 6.7%.
For fiscal 2025, analysts expect the financial services firm to report an adjusted EPS of $8.37, down 10.3% from $9.33 in fiscal 2024. However, adjusted EPS is anticipated to rebound and grow 4.1% year-over-year to $8.71 in fiscal 2026.
Shares of T. Rowe have decreased 13.8% over the past 52 weeks, lagging behind the S&P 500 Index's ($SPX) 11.9% rise and the Financial Select Sector SPDR Fund's (XLF) 26.7% return over the same period.
Despite reporting weaker-than-expected Q1 2025 revenue of $1.8 billion, shares of T. Rowe Price rose over 4% on May 2 due to adjusted earnings of $2.23 per share, which exceeded analyst expectations. Investors were also encouraged by a 4% increase in investment advisory fees to $1.6 billion and the firm's ability to grow assets under management (AUM) to $1.6 trillion, up 1.6% year-over-year, despite $8.6 billion in net outflows.
Analysts' consensus view on TROW stock is moderately bearish, with a "Moderate Sell" rating overall. Among 13 analysts covering the stock, eight recommend "Hold," one "Moderate Sell," and four suggest "Strong Sell." As of writing, the stock is trading above the average analyst price target of $94.54.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
