2023-05-02 07:46:06 ET
T. Rowe Price ( NASDAQ: TROW ) posted better-than-expected Q1 earnings on Tuesday as revenue matched the consensus and operating expenses declined. The quarter showed some encouraging signs, the company said.
"Markets posted gains, our investment performance showed signs of improvement, and we had strong net inflows of $7.5B to our target date products," said CEO and President Rob Sharps. "However, the market environment continues to be uncertain and our equity flows remain under pressure."
Q1 adjusted EPS of $1.69, topping the $1.63 average analyst estimate, fell from $1.74 in Q4 2022 and from $2.62 in Q1 2022.
Net revenue of $1.54B, matching the consensus, rose from $1.52 in the prior quarter and declined from from $1.86B in the year-ago period.
T. Rowe Price ( TROW ) stock slipped 0.9% in Tuesday premarket trading.
Investment advisory fees of $1.39B increased from $1.37B in Q4 2022 and dropped from $1.66B in Q1 2022. The investment advisory effective fee rate was 42.7 basis points compared with 42.3 bp in the prior quarter and 43.2 in the year-ago quarter.
Net client outflows moderated to $16.1B from $17.1B in Q4 2022.
Adjusted operating expenses fell to $1.02B from $1.07B in the prior quarter and from $1.04B in the year-ago period.
Assets under management ended the quarter at $1.34T, up from $1.27T at the end of Q4 2022. Net market appreciation and gains added $83.1B during the quarter.
Conference call at 8:00 AM ET.
Earlier, T. Rowe Price ( TROW ) non-GAAP EPS of $1.69 beats by $0.06, revenue of $1.54B in-line
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T. Rowe Price Q1 earnings reflect improved investment performance, lower expenses