T. Rowe Price(US:TROW) ZACKS·2025-10-29 16:21Core Viewpoint - T. Rowe Price Group, Inc. (TROW) is expected to report a decline in earnings for Q3 2025, while revenues are projected to increase compared to the same quarter last year [1][10]. Group 1: Earnings and Revenue Expectations - The Zacks Consensus Estimate for TROW's third-quarter earnings is $2.49 per share, indicating a year-over-year decline of 3.1% [11]. - Revenue estimates stand at $1.86 billion, reflecting a 3.9% increase from the prior-year quarter [11]. - The company is anticipated to benefit from higher assets under management (AUM) and investment advisory fees, which are expected to lift quarterly revenues [10]. Group 2: Assets Under Management and Market Performance - TROW's preliminary AUM as of September 30, 2025, is $1.77 trillion, a 5.4% increase from June 30, 2025, driven by improved equity market performance [4]. - The Zacks Consensus Estimate for total AUM is $1.74 trillion, indicating a 3.6% sequential increase [5]. Group 3: Expenses and Financial Challenges - T. Rowe Price is likely to face increased expenses due to investments in technology and client acquisition, which may pressure profit margins [10]. - The estimate for operating expenses (GAAP basis) is pegged at $1.2 billion, indicating a 3.5% decrease on a sequential basis [8]. - Despite the rise in expenses, cost management efforts are expected to mitigate some of the financial pressures [7]. Group 4: Market Context and Competitor Performance - The S&P 500 Index rose nearly 8% during the July-September quarter, indicating strong market performance that may have positively impacted TROW's results [3]. - Competitors like Invesco and SEI Investments Co. reported strong earnings, with Invesco's adjusted earnings increasing by 38.6% and SEI's by 9.2% from the prior-year quarter, highlighting a competitive landscape [12][13].