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Dec 31, 2022

T. Rowe Price Q4 2022 Earnings Report

T. Rowe Price reported a decrease in net revenues and diluted earnings per share for Q4 2022, while also experiencing net client outflows.

Key Takeaways

T. Rowe Price Group reported a decrease in net revenues to $1.5 billion and a diluted EPS of $1.16 for Q4 2022. The company experienced net client outflows of $17.1 billion during the quarter. Despite these challenges, the company returned $387.3 million to stockholders, including $111.3 million in share repurchases.

Year-end assets under management reached $1.27 trillion.

Q4 2022 net revenues were $1.5 billion.

Q4 2022 diluted EPS was $1.16, and adjusted diluted EPS was $1.74.

The company returned $387.3 million to stockholders in Q4 2022.

Total Revenue
$1.52B
Previous year: $1.96B
-22.3%
EPS
$1.74
Previous year: $3.17
-45.1%
Equity AUM
$664B
Previous year: $993B
-33.1%
Multi-Asset AUM
$400B
Previous year: $478B
-16.2%
Fixed Income AUM
$167B
Previous year: $171B
-2.1%
Gross Profit
$699M
Previous year: $1.15B
-39.2%
Cash and Equivalents
$1.76B
Previous year: $1.52B
+15.3%
Free Cash Flow
-$196M
Previous year: $301M
-165.0%
Total Assets
$11.6B
Previous year: $12.5B
-7.0%

T. Rowe Price

T. Rowe Price

Forward Guidance

T. Rowe Price estimates its 2023 non-GAAP operating expenses, excluding accrued carried interest compensation, will grow in the range of 2% to 6%. This range reflects the redeployment of $85 million in savings realized from the expense management actions taken in 2022 to fund strategic priorities.