T. Rowe Price profit beats estimates as advisory fees rise
T. Rowe Price profit beats estimates as advisory fees rise July 31 (Reuters) - Goldman-backed asset manager T. Rowe Price Group TROW.O beat Wall Street estimates for second-quarter profit on Friday, as higher investment advisory fees and rising equity markets lifted assets under management.
Here are some details:
The company's assets under management, which determine its investment advisory fees, rose 12.9% to $1.89 trillion as of June 30 from a year earlier.
A sharp rally in U.S. equities, with the S&P 500 and Nasdaq recording their best quarterly performance since 2020, helped drive higher assets under management and fee income.
T Rowe Price's investment advisory fees, the primary driver of its revenue, rose 11.3% to $1.74 billion in the quarter.
Adjusted profit rose to $565 million, or $2.57 per share, for the quarter, from $506.8 million, or $2.24 per share, a year earlier. Analysts on average were expecting earnings of $2.50 per share, according to LSEG data.
Peer Invesco IVZ.N also benefited from higher market levels, which helped lift assets under management and fee income.
Shares of the Baltimore, Maryland-based company, which have gained over 16% YTD, were up 2% in pre-market trading after the results.
(Reporting by Atharva Singh in Bengaluru; Editing by Tasim Zahid)
((Atharva.Singh@thomsonreuters.com;))
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