BALTIMORE - T. Rowe Price Group, Inc. (NASDAQ:TROW), a global asset management firm, reported its second-quarter 2024 earnings with an adjusted diluted earnings per share (EPS) of $2.26, matching analyst estimates. However, the company's revenue fell short of expectations, coming in at $1.73 billion against the consensus estimate of $1.78 billion. Following the release, TROW shares edged down 0.5%.
Rob Sharps, CEO and President, noted the company's steady progress, highlighting the growth in their ETF business, which reached $5.3 billion in assets under management (AUM) as of June 30. Sharps expressed confidence in the firm's strategic initiatives and its trajectory to significantly reduce net outflows for the year.
The reported revenue represents a 7.6% increase from the second quarter of the previous year. Investment advisory fees were a key component, rising 10.8% year-over-year (YoY) to $1.58 billion. Despite net client outflows of $3.7 billion, T. Rowe Price's AUM grew to $1.57 trillion, marking a 12.1% increase YoY, driven by market appreciation and income.
Operating expenses for the quarter increased by 8.5% YoY to $1.17 billion, with compensation, benefits, and related costs contributing to the rise. The firm's non-operating income saw a notable drop from the same quarter last year, from $106.2 million to $80.3 million.
The company's effective tax rate for the quarter was 24.8%, reflecting a year-to-date rate of 24.1% for 2024. This compares to a rate of 26.7% for the same period in 2023.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.