T. Rowe Price Group, Inc. reported significant financial growth in its third quarter and year-to-date results for 2024, as detailed in its recent 10-Q filing. For the three months ended September 30, 2024, the company achieved revenues of $1,785.6 million, marking a 6.9% increase from $1,670.7 million in the same period of 2023. Investment advisory fees rose 11.5% to $1,632.9 million, up from $1,463.9 million, driven by a 14.1% increase in average assets under management (AUM), which reached $1,589.5 billion.
Net income for the third quarter surged to $640.4 million, a substantial increase from $439.2 million in the prior year, with net income attributable to T. Rowe Price Group, Inc. rising to $603.0 million from $453.2 million. This resulted in diluted earnings per share of $2.64, up 34.0% from $1.97 in Q3 2023. For the nine months ended September 30, 2024, net income totaled $1,719.1 million, compared to $1,362.1 million in the same period of 2023, reflecting a 22.9% increase.
Total operating expenses for Q3 2024 were $1,172.0 million, a 7.6% increase from $1,089.4 million in Q3 2023. The rise in expenses was attributed to a market-related increase in supplemental savings liability. The operating margin slightly decreased to 34.4% from 34.8% year-over-year, as operating expense growth outpaced revenue growth.
As of September 30, 2024, T. Rowe Price reported total assets of $13,705.9 million, up from $12,278.8 million at the end of 2023. Cash and cash equivalents increased significantly to $3,173.5 million from $2,066.6 million. The company’s total stockholders’ equity attributable to T. Rowe Price Group, Inc. also rose to $10,249.3 million, compared to $9,505.1 million at the end of 2023.
In terms of strategic developments, T. Rowe Price has committed $319 million for investment in future OHA product launches through 2026. The company has also returned nearly $4.5 billion to stockholders through stock repurchases and dividends since the end of 2021, with $263.7 million spent on share repurchases in the first nine months of 2024.
Overall, T. Rowe Price's performance in Q3 2024 reflects strong revenue growth, improved profitability, and a solid financial position, supported by favorable market conditions and strategic investments.
About PRICE T ROWE GROUP INC
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