What To Expect From T. Rowe Price's (TROW) Q4 Earnings

Investment management firm T. Rowe Price (NASDAQ:TROW) will be reporting results this Wednesday morning. Here’s what to look for.

T. Rowe Price beat analysts’ revenue expectations by 0.6% last quarter, reporting revenues of $1.91 billion, up 5% year on year. It was a strong quarter for the company, with and a beat of analysts’ EPS estimates.

Is T. Rowe Price a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting T. Rowe Price’s revenue to grow 5.7% year on year to $1.95 billion, slowing from the 11.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.46 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. T. Rowe Price has missed Wall Street’s revenue estimates five times over the last two years.

Looking at T. Rowe Price’s peers in the custody bank segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Franklin Resources delivered year-on-year revenue growth of 3.8%, missing analysts’ expectations by 16.3%, and WisdomTree reported revenues up 33.4%, topping estimates by 3%. Franklin Resources traded up 4.5% following the results while WisdomTree was down 2.9%.

Read our full analysis of Franklin Resources’s results here and WisdomTree’s results here.

Investors in the custody bank segment have had fairly steady hands going into earnings, with share prices down 1.9% on average over the last month. T. Rowe Price’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $107.42 (compared to the current share price of $106.67).

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