T. Rowe Price Group (TROW) stock soared over 5% in pre-market trading on Monday, driven by the company's impressive third-quarter earnings report. The investment management firm reported an adjusted diluted earnings per share (EPS) of $2.57, exceeding analyst estimates of $2.34 by a significant 9.8% margin.
Despite the robust earnings performance, the company's total revenue of $1.79 billion fell slightly short of the $1.84 billion analyst forecast. Nevertheless, the market appeared to overlook the revenue miss and focused on the substantial EPS growth of 18.4% compared to the same quarter last year.
The strong earnings growth was propelled by an increase in T. Rowe Price's assets under management (AUM), which rose by $61.8 billion during the quarter to reach $1.63 trillion. However, the firm continued to face challenges with net client outflows, highlighting the need for further efforts to retain and attract new investors.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.