T. Rowe Price Group’s earnings surged 17.6 percent in the first quarter of 2018 to $453.7 million, driven partly by the big reduction in corporate tax rate.
The Baltimore-based investment management firm’s effective tax rate fell to 24.1 percent from 37.1 percent under President Donald Trump’s tax reform.
In the January-to-March period of 2017, T. Rowe Price earned $385.9 million. Per share earnings swelled to $1.77 per share from $1.54.
The firm’s revenue also grew to $1.33 billion in the first quarter, up from $1.13 billion a year earlier.
Assets under management increased by $23.1 billion during the quarter to $1.01 trillion as of March 31.
“This was another very good quarter for the firm and our clients,” William J. Stromberg, the company’s president and CEO, said in a statement. “Despite volatile markets that generally edged lower, our assets under management increased 2.3% during the first quarter of 2018. This growth was supported by investment performance that remains strong versus peers and benchmarks, and by near-record quarterly net inflows exceeded only by those in the first quarter of 2012.”
The company’s stock leapt more than 3 percent Wednesday, closing at $111 a share.
10:30 a.m. This story was updated to reflect the accurate effective tax rate paid by T. Rowe Price Group rather than the change in the U.S. corporate tax rate.