T. Rowe Price Group Inc. (TROW) reported net revenues of $577.4 million and net income of $158.5 million, or $0.59 per share, for the second quarter ended June 30. The results are an increase of 55% from the $.38 per share at the same time last year, when net revenues were $442.2 million and net income was $100 million, the company said in a Friday, July 23, news release.
Despite the increase, earnings fell short of analyst expectations. Analysts surveyed by Bloomberg expected earnings of $0.61 cents per share.
According to the company, assets under management were $391.1 billion, including $233.5 billion in the T. Rowe Price mutual funds distributed in the United States and $157.6 billion in other managed investment portfolios. Market depreciation, net of income, of $33 billion more than offset the $5.1 billion in net inflows during the second quarter of 2010, as assets under management decreased $27.9 billion from $419 billion at the end of the first quarter.
“Our second quarter financial results were achieved during a difficult period in which the European sovereign debt crisis sparked a sharp correction in global equity markets and volatility returned to levels not seen in more than a year,” said James A.C. Kennedy, the company’s chief executive officer and president, in a prepared statement. “In spite of this very challenging environment, we remain encouraged by the confidence clients continue to place in us, as evidenced by continued investor interest and demand across our diversified investment strategies.”