T. Rowe Price Group Inc., a money management firm based in Baltimore, reported fourth quarter earnings rose 25.3 percent and beat analyst estimates due to the bullish stock market.
The company reported net income of $379.8 million, up from net income of $303.2 million in the same quarter in 2015. Its earnings of $1.50 per share beat Wall Street estimates of $1.43 per share.
The firm attributes its rising profits to a booming and optimistic financial market, as the Dow Jones Industrial Average reached a record high of 20,000 Wednesday.
Assets under management rose to $810.8 billion from $765.7 billion in the fourth quarter of 2015. Revenue increased to $1.1 billion from $1.05 billion in the previous year.
“Economic growth finished 2016 on a strong note and investors grew more optimistic that the incoming administration and Congress will succeed in reducing regulations and taxes,” stated T. Rowe Price Chief Executive Officer William Stromberg in a statement.
However, T. Rowe Price stock fell 6.9 percent in midday Thursday trading, down $5.13 to $69.05, after the company said that it net client flows decreased by $5 billion due to clients reallocating to passive portfolios.
The SEC filing can be found here.
