T. Rowe Price Group Reports First Quarter 2018 Results

BALTIMORE, April 25, 2018

$385.9 million, and diluted earnings per share was $1.54. On a non-GAAP basis, diluted earnings per share for the first quarter of 2018 was $1.74, compared with $1.18 in the 2017 quarter.  The growth in the firm's diluted earnings per share year over year is due in part to the significant decline in the firm's tax rate as U.S. tax reform reduced the U.S. federal corporate tax rate beginning January 1, 2018, from 35% to 21%.  

The first quarter of 2017 net revenues and operating expenses presented within this release have been recast to reflect the impact of the firm adopting new accounting guidance on January 1, 2018, related to revenue recognition. As previously disclosed in its 2017 Form 10-K, the firm elected to adopt the new guidance on a retrospective basis, which requires 2017 and 2016 results to be restated. The new guidance requires certain revenue related expenses that are incurred in servicing the firm's U.S. mutual funds to be recognized in operating expenses versus being presented net against the related revenues. As such, net revenues and certain product-related operating expenses were recast to reflect an increase of $19.0 million for the first quarter of 2017 and $61.9 million for the full year 2017.

Financial Highlights

The table below presents financial results on a U.S. GAAP basis as well as a non-GAAP basis that adjusts for the impact of the Dell appraisal rights matter, the consolidated T. Rowe Price investment products, the supplemental savings plan, and other non-operating income. The firm believes the non-GAAP financial measures below provide relevant and meaningful information to investors about its core operating results.