T. Rowe Price Group (TROW) saw its profit climb in the second quarter.
Earnings and Revenue
Both EPS and revenues failed to meet Wall Street expectations as The company posted EPS of 79 cents a share and revenues of $736.8 million. Analysts were expecting EPS of 80 cents a share and revenues of $760.4 million. The estimates of 18 analysts ranged from profit of 76 cents to profit of 84 cents.
The company's net income for the quarter was $206.8 million. This is 1% higher than the year-ago quarter. Revenue climbed 2.4% from $719.3 million in the same period last year.
Company Fundamental Trends
The company's revenue rose last quarter after falling 46.4% to $733.8 million in the first quarter.
History Against Expectations
The company has now missed estimates in the last two quarters. In the first quarter, it missed expectations by 2 cents with net income of 75 cents versus a mean estimate of net income of 77 cents per share.
James A.C. Kennedy, the company's chief executive officer and president, commented, "Early in 2012, evidence supported the view that the U.S. economy was beginning to gain self-sustaining momentum, the Chinese economic slow down would likely be limited, and the European debt crisis was starting to be addressed. In contrast, more recent news has called all three of these trends into question. There is now rising concern about how long it might take to decide upon and implement a long-term solution in Europe. There is also considerable doubt about the willingness of politicians on this side of the Atlantic to rise above politics, especially in an election year, to make the decisions needed to address U.S. fiscal issues. The renewed political and economic uncertainties have led to another round of retrenchment by consumers and corporations around the globe, as well as by investors."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.