In This Article:
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Adjusted Earnings Per Share (EPS): $2.23 for Q1 2025, down from $2.38 in Q1 2024, but up from $2.12 in Q4 2020.
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Net Outflows: $8.6 billion, primarily driven by US equities and rebalancing.
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Target Date Franchise Net Inflows: $6.3 billion, led by blend products.
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Fixed Income Net Inflows: $5.4 billion, mainly from institutional clients.
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ETF Net Inflows: $3.26 billion, with notable inflows in specific ETFs.
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Adjusted Net Revenue: $1.8 billion, a marginal increase from Q1 2024, down 3.6% from Q4 2020.
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Investment Advisory Revenue: $1.6 billion, a 4% increase compared to Q1 2024.
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Annualized Effective Fee Rate: 40 basis points, excluding performance-based fees, a decline from prior periods.
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Adjusted Operating Expenses: $1.1 billion, a 7.4% increase from Q1 2020.
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Capital Returned to Stockholders: Over $500 million in Q1, including $289 million in dividends and $217.5 million in share buybacks.
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Cash and Discretionary Investments: $3.3 billion as of March 31, 2025.
Release Date: May 02, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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T. Rowe Price Group Inc (NASDAQ:TROW) reported improved investment performance, with over 60% of their funds outperforming their peer groups across various time periods.
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The company strengthened its leadership position in retirement, expanding its reach beyond the United States with new partnerships in Japan, Korea, and Canada.
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T. Rowe Price Group Inc (NASDAQ:TROW) launched new ETFs and SMA offerings, increasing their ETF assets under management to over $12.5 billion.
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The firm maintained a strong balance sheet with $3.3 billion in cash and discretionary investments, allowing for continued capital returns to stockholders.
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T. Rowe Price Group Inc (NASDAQ:TROW) was recognized for its workplace and investment capabilities, being named one of Fortune Magazine's World's Most Admired Companies for the 15th consecutive year.
Negative Points
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The company experienced $8.6 billion in net outflows during the first quarter, primarily driven by US equities and rebalancing activities.
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Adjusted earnings per share decreased to $2.23 from $2.38 in the same quarter last year.
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The effective fee rate declined due to a mix shift in assets, with a trend towards lower-cost vehicles such as ETFs and collective investment trusts.
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Deployment of capital in private lending funds was muted due to a slow M&A environment, impacting fee-based AUM growth.
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Market volatility led to increased retail outflows in early April, although this normalized later in the month.