Earnings Preview: T. Rowe Price

T. Rowe Price (TROW) is expected to report Q2 earnings before the market open on Friday, July 24 with a conference call scheduled for 12:00 pm.

Guidance

Analysts are looking for EPS of 34c on revenue of $423.77M. The consensus range for EPS is 31c-38c, while the consensus range for revenue is $410.63M-$442.39M, according to First Call.

Analyst Views

Investors in T. Rowe Price may be more optimistic about the company's outlook after Legg Mason (LM), another asset manager, reported better than expected results on July 20. In addition, JPMorgan earlier this month upgraded T. Rowe to Neutral from Underweight. The firm, which set an $8.50 target on the stock, believes that the company's business is continuing to perform well. JPMorgan is now less concerned that changes in 401k laws will negatively affect T. Row.

Meanwhile, Citigroup last month upgraded T. Rowe to Buy from Hold, as the firm thought that asset flow trends had become more positive. The firm raised its target on the shares to $48 from $39.

On a negative note, Barron's earlier this month identified T. Rowe as an overvalued stock that investors should avoid.