T. Rowe Price Group Fourth Quarter 2011 Surpasses Estimates and Increases Assets

Baltimore-based T. Rowe Price Group, Inc. (NASDAQ-GS: TROW) reported mixed financial results for the fourth quarter and all of 2011. The money manager posted increased revenues but a profit slightly lower than the fourth quarter of 2010.

Revenues for the fourth quarter were $671.6 million in contrast to $647.5 million in the same period of 2010. Despite the increased revenues, net income was $188.4 million or $0.73 cents per diluted common share. That was down slightly from the $191.6 million in 2010 but turned to be more for shareholders compared to $0.72 cents per diluted common share.

T. Rowe Price results stayed ahead of predictions surpassing the average earnings estimate of $0.69 cents per share, of 21 analysts the high estimate was 0.74 cents per share while the low estimate was $0.5 cents per share.

Revenues also stayed well ahead of estimates that averaged $658.3 million.

For the year 2011, T. Rowe Price accrued $2.7 billion in net revenues and net income of   $773.2 million $2.92 per diluted common share.

James A.C. Kennedy, the company's chief executive officer and president commented with outlook for 2012 being uncertain due to the political climate, "As we begin 2012, most world markets have continued their positive momentum from the fourth quarter. However, the macro outlook remains clouded, especially by political and policy issues. Though caution is understandable, our teams are finding attractive long-term investment opportunities. We expect that European and U.S. leaders will eventually address their fiscal challenges, bolstering investor confidence. Moreover, U.S. corporate profit growth should continue, albeit at a slower pace. This, combined with attractive equity valuations, has historically been a good recipe for market gains."

T. Rowe Price had $489.5 billion under management as of December 31, 2011, an increase of $7.5 billion from year end 2010. 

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