T. Rowe Price shares fall as Q4 earnings miss estimates

Published 05/02/2025, 13:50
T. Rowe Price shares fall as Q4 earnings miss estimates

BALTIMORE - T. Rowe Price Group (NASDAQ:TROW) reported fourth quarter 2024 results that fell short of analyst expectations, sending shares down -1.77% in early trading.

The asset management firm posted adjusted earnings per share of $2.12, missing the consensus estimate of $2.21. Revenue came in at $1.82 billion, below the $1.88 billion analysts were expecting.

For the quarter, T. Rowe Price reported net client outflows of $19.3 billion. Assets under management stood at $1.61 trillion as of December 31, 2024, down 1.5% from $1.63 trillion at the end of the third quarter.

"We closed 2024 with $1.6 trillion in AUM and $43.2 billion in 2024 net outflows—which we reduced by nearly half YoY," said Rob Sharps, chair, CEO, and president. "I am optimistic that we remain on the path to positive flows, and we are on pace to further reduce outflows again this year."

The company’s investment advisory fees rose 16.1% YoY to $1.67 billion. However, performance-based advisory fees declined 23.7% to $19.3 million.

T. Rowe Price returned $355 million to stockholders in Q4 through dividends and share repurchases. For the full year 2024, the company returned $1.5 billion to shareholders.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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