T. Rowe Price Q4 earnings: strong investment performance offsets outflows

In the final quarter of 2023, T. Rowe Price showcased resilience in its financial performance amid challenging market conditions. The company reported a slight dip in adjusted profit, down 1.2% to $394.7 million, or $1.72 per share, beating the expected $1.60 per share. Revenue saw a 6.5% increase from the previous year, reaching $1.64 billion and surpassing forecasts of $1.62 billion.

Despite experiencing $28.3 billion in net cash outflows, a 13.3% increase from the prior year, T. Rowe Price's assets under management (AUM) climbed to $1.44 trillion, marking a 13.3% rise year-over-year. 

This growth underscores the company's robust investment performance, effectively counterbalancing the impact of outflows. CEO Rob Sharps remains optimistic about the company's trajectory.

T. Rowe Price's revenue growth, particularly in investment advisory fees, which jumped nearly 7% to $1.46 billion, reflects the company's strong investment prowess.

This success suggests that T. Rowe Price's active management approach, characterized by frequent buying and selling of investments, continues to hold appeal, despite the industry's ongoing shift towards passive fund management.

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