Quarterly Revenue Performance

T. Rowe Price reported earnings of $2.81 per share this quarter, beating the Zacks Consensus Estimate of $2.55. This is an increase from last year’s $2.57 per share when adjusted for one-time items. The earnings surprise was +10.20%, up from +4.19% last quarter. T. Rowe has exceeded consensus EPS estimates in three of the last four quarters. Quarterly revenues reached $1.89 billion, which is 2.34% above estimates and higher than last year’s $1.79 billion. In the last four quarters, the company has surpassed revenue estimates once. Shares have dropped by 9.7% since the start of the year, while the S&P 500 has gained 16%. T. Rowe’s future performance will depend on upcoming earnings expectations and management insights. The company currently ranks #1 (Strong Buy) according to Zacks, suggesting it will outperform the market. The estimated EPS for next quarter is $2.39, with expected revenues of $1.91 billion.

Industry Comparisons

In the same industry, TPG Inc. is expected to release quarterly earnings of $0.55 per share, marking a 22.2% increase from last year. TPG’s revenues are projected at $503.85 million, up 9.6% year-over-year. With T. Rowe Price exceeding earnings expectations, we have seen a drop in the stock’s implied volatility. Strategies like selling premium, such as short strangles, ahead of news events would have benefitted from this volatility decline. Now, the focus shifts to whether this positive surprise can create real momentum in the stock price. The strong earnings and revenue beat could help reverse T. Rowe’s underperformance this year. With the Federal Reserve signaling a pause in rate hikes until late 2025, market conditions are improving for asset managers. Recent industry data from September 2025 shows that outflows from active equity funds have begun to stabilize, easing a major concern for the sector and supporting a more optimistic outlook. However, we should remain cautious due to the stock’s recent performance. Even after a similar earnings beat in July 2025, TROW shares quickly fell. The stock is still down nearly 10% this year, while the S&P 500 has risen 16%, so we must be careful that this report may not shift overall negative sentiment. Looking ahead, we suggest selling out-of-the-money put spreads with November or December 2025 expirations as a smart strategy. This lets us collect premium while managing risk, betting that today’s strong results will provide a price floor. We would avoid purchasing expensive call options until management offers positive forward guidance on their earnings call. TROW’s positive performance also highlights its competitor, TPG, which reports on November 4th. With both companies in a well-ranked industry that is improving, there is a potential opportunity. TPG’s options are suggesting a significant price move, and its earnings estimates have been raised, indicating that TROW’s strength could serve as a basis for a bullish approach on TPG before its announcement. Create your live VT Markets account and start trading now.

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