Does The Street Have T. Rowe Price Group Figured Out?

T. Rowe Price Group (NAS: TROW) is expected to report Q4 earnings on Jan. 29. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict T. Rowe Price Group's revenues will increase 19.1% and EPS will expand 21.9%.

The average estimate for revenue is $800.1 million. On the bottom line, the average EPS estimate is $0.89.


Revenue details
Last quarter, T. Rowe Price Group booked revenue of $769.7 million. GAAP reported sales were 13% higher than the prior-year quarter's $679.4 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.87. GAAP EPS of $0.94 for Q3 were 32% higher than the prior-year quarter's $0.71 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 62.6%, 270 basis points better than the prior-year quarter. Operating margin was 46.6%, 310 basis points better than the prior-year quarter. Net margin was 32.1%, 480 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $3.04 billion. The average EPS estimate is $3.36.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 374 members out of 402 rating the stock outperform, and 28 members rating it underperform. Among 126 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 119 give T. Rowe Price Group a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on T. Rowe Price Group is outperform, with an average price target of $65.53.

Looking for alternatives to T. Rowe Price Group? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.

The article Does The Street Have T. Rowe Price Group Figured Out? originally appeared on Fool.com.

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. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.


Increase your money and finance knowledge from home

What are Penny Stocks

The lucrative and dangerous world of penny stocks.

View Course »

Introduction to Preferred Shares

Learn the difference between preferred and common shares.

View Course »

Add a Comment

*0 / 3000 Character Maximum