T. Rowe Price, the Baltimore-based investment-fund manager, has announced a significant increase in revenue for the fourth quarter of last year. This growth can be attributed to higher advisory fees and an increase in assets under management.
The company reported earnings of $437.6 million, or $1.90 per share, for the three months ended December 31, compared to $266 million, or $1.16 per share, for the same period the previous year.
After adjusting for one-time items, T. Rowe Price’s earnings were $1.72 per share, surpassing analysts’ expectations of $1.62 per share, according to FactSet.
Revenue for the fourth quarter rose by nearly 8%, reaching $1.64 billion, exceeding analysts’ expectations of $1.62 billion.
Investment advisory fees also saw a significant increase of almost 7%, totaling $1.46 billion. However, there were net client outflows of $28.3 billion during the quarter, resulting in year-end assets under management amounting to $1.45 trillion.
Despite the challenges faced in 2023 with substantial net outflows, Chief Executive Rob Sharps expressed confidence in the company’s future prospects. “We are seeing a number of early indicators that support our confidence that better days are ahead,” he said.
