Earnings surge nearly 50% at T. Rowe Price for quarter

T. Rowe Price Group reported Thursday that its earnings jumped nearly 50 percent in the quarter ended Sept. 30.

The Baltimore-based money management firm said it made a profit of $583 million in the July-to-September period, up from $390.9 million a year earlier. Per-share earnings were $2.30, compared with $1.56.

Analysts had been projecting T. Rowe would report earnings of $1.93 a share.

The company’s results included a onetime gain of 27 cents per share from the sale of its 10 percent stake in Daiwa SB Investments Ltd. during the quarter. T. Rowe invested in that joint venture with Daiwa Securities and Sumitomo Bank in 1999.

They also reflect the drop in its tax burden from the federal tax reform, which reduced its effective tax rate to 24 percent in the third quarter from 34.4 percent a year earlier.

Revenue rose 12 percent to $1.39 billion in the third quarter from $1.23 billion a year ago.

Assets under management climbed 3.8 percent to $1.08 trillion as of Sept. 30, up from $1.04 trillion three months earlier, but much of that gain was attributed to market appreciation and income. The market’s downturn in October may have eroded much of that growth.

“Our long-term investment performance versus our peers remains strong, and we remain highly focused on delivering for our clients,” said William J. Stromberg, T. Rowe’s president and CEO, in a statement. “We also continue to execute on our strategic plan across investment capabilities, distribution, and technology, including creating operational efficiency gains.”

T. Rowe’s stock closed Thursday at $95.52 a share, up $1.65 each in New York Stock Exchange trading.