HenryTo
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Joined: 06 Aug 2004
Posts: 11742
Location: Los Angeles, California
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 Posted: Tue Apr 26, 2011 12:57 am Post subject: T. Rowe Price (TROW) |
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Morningstar on TROW's 1Q earnings:
| Quote: | T. Rowe Price Posts Solid First-Quarter Results; Organic Growth Should Improve as Year Progresses
T. Rowe Price TROW started out 2011 on a solid note, with the firm's assets under management (AUM) increasing 6% sequentially to a record $510 billion. Net inflows contributed $6 billion during the quarter, with market appreciation adding another $22 billion to total AUM. While inflows may have been a bit softer than they were during the third and fourth quarters of last year, most of this was due to a few of the firm's institutional clients restructuring their equity allocations during the quarter. We don't envision this being too much of a problem as T. Rowe Price moves through the rest of the year, with the firm likely to get back to a more normalized 2% rate of organic growth during the current quarter. With average AUM up more than 20% year over year, T. Rowe Price reported a 23% increase in first-quarter revenue when compared to the prior year's period. Operating margins also improved to 46% of sales, close to 300 basis points higher than they were during the first quarter of 2010. While we don't normally read too much into first-quarter results, T. Rowe Price's performance during the most recent period sets up the firm to meet our full-year estimates. Given the strength of its product portfolio, which includes solid-performing equity and fixed-income funds, its ability to generate some of the strongest internal growth in our coverage universe, and its knack for holding on to assets much better than its peers, we continue to believe that T. Rowe Price is one of the better-positioned asset managers under our coverage. Our fair value estimate is unchanged. |
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