TROW Intrinsic Value Calculator – T. Rowe Price Set to Continue Earnings Surprise Streak in Upcoming Report

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The company offers a diverse range of investment strategies and solutions to individual and institutional clients, with a strong focus on long-term growth and risk management. Its stock, listed on the NASDAQ under the ticker symbol TROW, has been consistently performing well and has shown a steady upward trend over the past several years. One of the key factors contributing to T. Rowe Price ($NASDAQ:TROW)’s success is its strong financial performance, which has exceeded market expectations time and again. This impressive track record has not only instilled confidence in investors but has also raised expectations for the upcoming earnings report. Analysts are optimistic about T. Rowe Price’s potential to continue its earnings surprise streak, citing several factors that could contribute to its success. This growth can be attributed to strong market performance and inflows from both new and existing clients. Moreover, T. Rowe Price has been actively expanding its global footprint, with a focus on emerging markets like China and India. This has allowed the company to tap into new sources of revenue and diversify its client base.

Additionally, T. Rowe Price has been investing in technology and digital platforms to enhance its client experience and drive efficiency, which could result in cost savings and improved profitability. Furthermore, the current market conditions are favorable for asset managers like T. Rowe Price, as the global economy continues to recover from the impacts of the pandemic. With the Federal Reserve keeping interest rates low and market volatility remaining relatively low, there is a strong possibility that the company’s investment products will continue to perform well. In conclusion, T. Rowe Price’s strong financial performance, expanding global presence, and favorable market conditions make it a company with a lot of potential for continued success. While there are always risks associated with investing, T. Rowe Price’s track record and current market conditions make it a stock worth considering for investors looking to capitalize on potential earnings surprises.

Earnings

T. Rowe Price, a global investment management firm, is expected to continue its recent streak of positive earnings surprises in its upcoming report for the fourth quarter of FY2023. In the company’s previous earnings report for the same quarter in December 2021, T. Rowe Price reported a total revenue of 1961.7 million USD and a net income of 740.6 million USD. This represented a significant increase of 28.7% in total revenue and a staggering 178.4% increase in net income compared to the same period in the previous year. This impressive growth in revenue and income can be attributed to T. Rowe Price’s strong performance across various sectors, including equities, fixed income, and multi-asset strategies. The company’s diversified investment portfolio and strategic decision-making have allowed it to capitalize on market opportunities and generate strong returns for its investors. Moreover, T. Rowe Price’s financial performance has shown consistent growth over the past three years.

In the last three fiscal years, the company’s total revenue has increased from 1642.0 million USD to 1961.7 million USD, showcasing its ability to sustain and build upon its success. This growth is a testament to T. Rowe Price’s sound investment strategies and its commitment to providing value to its clients. Investors and analysts are eagerly anticipating T. Rowe Price’s upcoming earnings report, expecting the company to continue its impressive growth trajectory and deliver another positive surprise. With a track record of strong financial performance and a reputation as a trusted investment management firm, T. Rowe Price is well-positioned to continue its success in the foreseeable future.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for TROW. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for TROW. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for TROW. More…

Key Ratios Snapshot

Some of the financial key ratios for TROW are shown below. More…

Price History

This positive movement in the stock price indicates that investors are optimistic about the company’s upcoming earnings. T. Rowe Price has a track record of delivering strong financial results and surpassing earnings estimates in its previous quarters. This has contributed to a steady increase in the company’s stock price over the years. Analysts are expecting another earnings surprise from the company in the upcoming report, continuing its streak of beating expectations. The company’s strong performance can be attributed to its diversified portfolio of investment products and services, catering to a wide range of clients including individuals, institutions, and retirement plans. In addition to its successful investment strategies, T. Rowe Price has also been focused on expanding its digital presence and leveraging technology to enhance its services for clients.

This includes initiatives such as the launch of digital investment platforms and robo-advisors, catering to the growing demand for online investment solutions. Overall, T. Rowe Price’s consistent growth and strong financial performance make it an attractive investment option for shareholders. The company’s upcoming earnings report is expected to further solidify its position as a top-performing investment management firm and continue its upward momentum in the stock market. Live Quote…

Analysis – TROW Intrinsic Value Calculator

After carefully examining the financial information of T. ROWE PRICE, I have determined that its intrinsic value is around $137.0 per share. This calculation is based on our proprietary Valuation Line, which takes into account various financial metrics such as earnings, cash flow, and growth projections. Currently, T. ROWE PRICE’s stock is being traded at $108.98 per share. This means that the stock is currently undervalued by approximately 20.4%. This presents a potential investment opportunity for those looking to purchase shares of T. ROWE PRICE at a discounted price. In my analysis, I have also taken into consideration the overall performance and financial health of the company. T. ROWE PRICE has a strong track record of consistent earnings and revenue growth, as well as a healthy cash flow. This indicates a stable and successful business model, which adds to the attractiveness of the stock. Furthermore, T. ROWE PRICE has a solid reputation in the finance industry and a loyal customer base. This provides a level of stability and trust in the company, making it a less risky investment option. Based on all of these factors, I believe that T. ROWE PRICE is currently undervalued and presents a good investment opportunity for those looking to add a stable and reputable company to their portfolio. However, as with any investment, it is important to conduct your own research and carefully consider your own financial goals before making any decisions. More…

Peers

The firm provides its services to individuals, institutions, retirement plans, trusts, and partnerships. It launches and manages equity, fixed income, balanced, and commodity mutual funds. The company was founded in 1937 and is headquartered in Baltimore, Maryland. As of December 31, 2017, T. Rowe Price Group Inc had $934.2 billion in assets under management (AUM). Federated Hermes Inc, Franklin Resources Inc, and ABC arbitrage SA are all competitors of T. Rowe Price Group Inc. Federated Hermes Inc is a global investment manager that offers a range of investment products, including equities, fixed income, and alternatives. As of December 31, 2017, Federated Hermes Inc had $590.6 billion in AUM. Franklin Resources Inc is a global investment management company that provides investment management and related services to institutional and individual investors. As of June 30, 2018, Franklin Resources Inc had $737.2 billion in AUM. ABC arbitrage SA is a French asset management company that specializes in convertible bonds and global equity markets arbitrage. As of December 31, 2017, ABC arbitrage SA had €5.4 billion in assets under management.

– Federated Hermes Inc ($NYSE:FHI)

Federated Hermes Inc. is a publicly traded company with a market capitalization of $2.86 billion as of 2022. The company has a return on equity of 22.41%. Federated Hermes Inc. is a financial services company that provides asset management and related services to individuals, families, institutions, and businesses. The company offers a broad range of investment strategies and products, including equity, fixed income, and alternative investments.

– Franklin Resources Inc ($NYSE:BEN)

Franklin Resources Inc is a publicly owned asset management holding company based in San Mateo, California. The company, through its subsidiaries, manages mutual funds and other investment portfolios. It also provides investment management and advisory services to institutional clients. As of December 31, 2020, Franklin Resources Inc had $744.2 billion in assets under management.

The company’s market cap is 11.69B as of 2022. The company has a return on equity of 12.45%. The company’s primary business is managing mutual funds and other investment portfolios. The company also provides investment management and advisory services to institutional clients.

– ABC arbitrage SA ($LTS:0OPJ)

ABC arbitrage SA is a French holding company that engages in the provision of financial services. The company operates through the following segments: Asset Management, Corporate Finance, and Market Making. The Asset Management segment offers investment products and services to individuals, professionals, and institutional clients. The Corporate Finance segment provides financing and advisory services to companies. The Market Making segment deals with market making activities in listed securities. ABC arbitrage SA was founded in 1991 and is headquartered in Paris, France.

Summary

T. Rowe Price has been consistently beating earnings expectations in its recent reports and investors are wondering if this streak will continue. The company’s upcoming earnings report is highly anticipated as it could indicate the company’s overall financial health. Analysts are closely monitoring T. Rowe Price’s performance and evaluating if it is a viable investment option.

Investors should consider the company’s past earnings track record and its current financial standing before making any investment decisions. The company’s ability to surprise the market with positive earnings could potentially attract more investors and drive stock prices up.