T. Rowe Price Group Inc. reported Wednesday morning that its earnings rose 13% in the quarter ended March 31 amid a turnaround in the markets.
The Baltimore-based money management firm said it made $512.6 million in the January-to-March period, up from $453.7 million a year earlier. Earnings per share rose 18% to $2.09 each in the latest quarter from $1.77 a year ago.
"The first quarter saw a strong recovery in the markets and investors partially returning from the sidelines after the volatility in December,” said William J. Stromberg, T. Rowe’s president and CEO, in a statement. “Against this backdrop, we continued to deliver solid investment performance and financial results.
The firm said its adjusted earnings per share — better reflecting the earnings of its core business — were $1.87 a share, which exceeded analysts consensus expectations compiled by Zack’s Investment Research of $1.63 a share.
T. Rowe shares closed up more than 2% at $109.76 each in Wednesday trading.
The company reported net inflows of $5.4 billion of new money from investors, which contributed to its increase in assets under management from $962 million as of Dec. 31.
In his remarks, Stromberg noted the U.S. Securities and Exchange Commission gave preliminary approval for the first “semi-transparent” exchange-traded fund, which he said could give investors access to active management strategies in the ETF format.