NASDAQ$TROW

T Rowe Price Group Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported an increase in AUM and net revenues driven by improved market performance and cost savings initiatives.

T. Rowe Price Group reported Q2 2023 results with an increase in assets under management to $1.40 trillion. Net revenues increased by 6.4% compared to Q2 2022, primarily driven by an increase in accrued carried interest. Diluted earnings per share (EPS) was $2.06, and adjusted diluted EPS was $2.02.

  • Assets under management reached $1.40 trillion at the end of the quarter.
  • Net client outflows amounted to $20.0 billion.
  • Diluted earnings per common share (EPS) stood at $2.06; Adjusted diluted EPS was $2.02.
  • Returned $323 million to stockholders mostly from the recurring quarterly dividend

Headline financials

Total Revenue

$1.61B

Previous: $1.51B+6.4%
EPS (adj)

$2.02

Previous: $1.79+12.8%
Equity AUM

$732B

Previous: $700B+4.7%
Multi-Asset AUM

$453B

Previous: $396B+14.5%
Alternatives AUM

$44.7B

Previous: $43.1B+3.7%
Capital Expenditures

-$132M

Previous: -$123M-7.8%
Free Cash Flow

$344M

Previous: $217M+58.7%
Net Income

$476M

Previous: $340M+40.3%
Operating Income

$534M

Previous: $669M-20.2%
Gross Profit

$817M

Previous: $898M-9.0%
Cash & Equivalents

$2.25B

Previous: $2.12B+6.3%
Total Assets

$12.6B

Previous: $11.8B+7.2%
Stock-Based Comp

$56.6M

Previous: $59.3M-4.6%

Revenue & EPS history

T. Rowe Price · Revenue · Quarterly

$1.61B

Q2 2023+6.4%vs Q2 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

T. Rowe Price · $1.47B total across 2 segments · Q2 2023

  • Advisory fees
    $1.43B
  • CABI
    $38.7M

Forward guidance

The firm estimates that its effective tax rate for the full year 2023 will be in the range of 26% to 30%, on a U.S. GAAP basis, and 26.5% to 29.5%, on a non-GAAP basis.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.1%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+1.9%

Avg return

30 days after

52%

38 / 73 earnings

Positive

+9.8%

Q1 2020

Best reaction

-8.9%

Q3 2011

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2025+2.4%+3.6%+4.1%
Q1 2026+2.1%+3.6%+4.1%
Q3 2025-0.5%+0.2%+0.2%
Q1 2025+3.8%+3.7%+6.2%
Q4 2024-4.2%-5.1%-12.9%
Q3 2024+2.4%+10.4%+12.7%
Q2 2024-2.1%-1.1%-5.1%
Q1 2024+3.0%+1.4%+8.6%
Q4 2023-3.1%-4.5%+7.5%
Q3 2023-3.0%-1.9%+5.9%
Q2 2023+5.3%+1.2%-6.3%
Q1 2023-5.0%-3.4%-2.6%
Q4 2022-0.3%-0.1%-5.6%
Q3 2022-0.4%-2.2%+14.7%
Q2 2022+2.5%+1.8%-0.6%
Q1 2022-6.1%-1.9%-0.9%
Q4 2021-4.3%-0.6%-7.3%
Q3 2021+6.4%+6.4%-0.5%
Q2 2021+0.6%+3.4%+9.8%
Q1 2021-0.3%+1.2%+6.5%
Q4 2020-0.0%+0.6%+3.6%
Q3 2020-7.6%-3.6%+6.2%
Q2 2020+0.4%+2.6%+3.9%
Q1 2020+9.8%+3.7%+13.3%
Q4 2019+4.0%+2.5%-10.1%
Q3 2019+4.9%+8.7%+11.7%
Q2 2019+3.1%+4.0%-4.5%
Q1 2019+0.1%-0.2%-3.5%
Q4 2018+0.8%+2.6%+8.5%
Q3 2018+0.0%+2.5%+0.8%
Q2 2018+0.2%-3.2%-4.9%
Q1 2018+4.6%+6.0%+13.0%
Q4 2017-5.0%-6.5%-6.4%
Q3 2017-1.2%-2.4%+2.9%
Q2 2017+4.7%+1.5%+1.7%
Q1 2017-3.4%-2.4%-4.1%
Q4 2016-6.5%-9.1%-3.0%
Q3 2016-3.5%-3.8%+12.2%
Q2 2016-4.1%-4.1%-6.8%
Q1 2016+0.6%
Q4 2015+7.1%
Q3 2015+6.8%
Q2 2015-2.4%
Q1 2015-0.9%
Q4 2014-3.4%
Q3 2014+1.1%
Q2 2014-2.4%
Q1 2014+0.2%
Q4 2013+3.2%
Q3 2013-2.7%
Q2 2013-4.8%
Q1 2013-6.0%
Q4 2012-1.7%
Q3 2012+0.1%
Q2 2012-1.5%
Q1 2012+3.6%
Q4 2011+1.6%
Q3 2011-8.9%
Q2 2011-6.7%
Q1 2011+2.6%
Q4 2010+0.2%
Q3 2010+3.8%
Q2 2010-2.0%
Q1 2010+1.2%
Q1 2008-0.3%
Q4 2007-0.3%
Q4 2009-0.3%
Q3 2009+9.2%
Q3 2008+9.2%
Q2 2009+0.3%
Q1 2009+0.3%
Q2 2008+0.3%
Q4 2008+0.3%

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