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T. Rowe Price Says 'Moderate' Decline in First-Quarter Earnings

TSC Staff

T. Rowe Price (TROW) said Thursday that first-quarter earnings would be "moderately below" last quarter's level and that growth is unlikely to exceed an annual rate of 1% during the first half.

The Baltimore-based investment adviser blamed the slowdown in performance on sharp declines in the equity markets and the resulting drop in the firm's assets under management.

In the fourth-quarter of 2000, T. Rowe Price earned 43 cents a share. Speaking to stockholders at the company's annual meeting, Chairman George A. Roche did not specify how much below that level first-quarter earnings would be. The consensus of 13 analysts surveyed by Thomson Financial/First Call was for earnings of 41 cents a share. In the first quarter of last year, T. Rowe Price earned 58 cents a share.

Roche said the outlook for the rest of the year is "mixed," with a sluggish economy dampening consumer spending, but with falling interest rates boosting financial markets. "We do not predict the market, but believe most of the decline has been experienced," he said.

He told shareholders that expenses would be managed carefully and would be lower this year than they were last year.

Shares of T. Rowe Price rose $2.25, or 8%, to $30.81 in recent Nasdaq trading.