The earnings miss appears to be driven by a $151.9 million non-operating loss related mostly to losses on investments.
For all of 2018, T. Rowe earned $1.84 billion, or $7.27 per share, on $5.37 billion in revenue. A year earlier, the company made nearly $1.5 billion, or $5.97 a share, on revenue on $4.85 billion in revenue.
With the declines in the markets, T. Rowe’s assets under management dropped 2.9 percent to $962.3 billion as of Dec. 31, from $991.1 billion a year earlier.
In a statement, William J. Stromberg, T. Rowe’s president and CEO, acknowledged the “more muted” fourth quarter performance “amidst increased market volatility.”
"Overall it was a strong financial year for the firm, with average [assets under management], revenues, and earnings per share up markedly over 2017,” Stromberg said. “We continued to perform well for our clients, with favorable long-term investment performance versus our peers and high client satisfaction across our channels.”