T. Rowe Price
posted an increase in third-quarter profit and topped analysts' estimates by 3 cents, helped by the strong stock market.
The Baltimore-based company earned $66.3 million, or 51 cents a share, compared with $43.2 million, or 34 cents a share, in the year-ago period. Analysts were calling for 48 cents a share. Revenue was $258 million, up from $222 million last year.
"As the market has returned to levels not seen in over a year, we continue to benefit from the performance of our managed investment portfolios," said President George A. Roche.
Assets under management were $168.9 billion, from $161.2 billion a year ago. The company said net cash inflows were more than $2.6 billion and its mutual funds had $1.6 billion of net cash inflows. Stock funds had net investor subscriptions of $1.8 billion and bond and money market funds had net cash outflows of $200 million, said the company.
Looking ahead, Roche said: "We believe the remainder of the year should remain favorable for the financial markets and for the company. Sustained and steady economic growth, continued recovery in corporate earnings, attractive valuations in many sectors, and the favorable interest rate and inflation environment should continue to offer prudent long-term investors a more welcoming environment moving forward."
Analysts are expecting the company to earn 49 cents a share in the fourth quarter and $1.69 a share for the year. Last year, the company earned 37 cents a share in the fourth quarter and $1.52 a share for the full year.
Shares of T. Rowe Price closed at $40.55 Thursday on the