Yahoo Finance T. Rowe Price Group, Inc. Just Recorded A 26% EPS Beat: Here's What Analysts Are Forecasting Next
T. Rowe Price Group, Inc. (NASDAQ:TROW) investors will be delighted, with the company turning in some strong numbers with its latest results. It was overall a positive result, with revenues beating expectations by 2.8% to hit US$1.8b. T. Rowe Price Group also reported a statutory profit of US$2.49, which was an impressive 26% above what the analysts had forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for T. Rowe Price Group
Taking into account the latest results, the most recent consensus for T. Rowe Price Group from nine analysts is for revenues of US$7.05b in 2024. If met, it would imply a satisfactory 5.7% increase on its revenue over the past 12 months. Statutory earnings per share are forecast to dip 2.5% to US$8.26 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$7.07b and earnings per share (EPS) of US$8.23 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
The analysts reconfirmed their price target of US$115, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic T. Rowe Price Group analyst has a price target of US$125 per share, while the most pessimistic values it at US$101. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Of course, another way to look at these forecasts is to place them into context against the industry itself. It's clear from the latest estimates that T. Rowe Price Group's rate of growth is expected to accelerate meaningfully, with the forecast 7.6% annualised revenue growth to the end of 2024 noticeably faster than its historical growth of 4.1% p.a. over the past five years. Other similar companies in the industry (with analyst coverage) are also forecast to grow their revenue at 6.9% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that T. Rowe Price Group is expected to grow at about the same rate as the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. They also reconfirmed their revenue estimates, with the company predicted to grow at about the same rate as the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
With that in mind, we wouldn't be too quick to come to a conclusion on T. Rowe Price Group. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple T. Rowe Price Group analysts - going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for T. Rowe Price Group (1 is a bit unpleasant!) that we have uncovered.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
