T. Rowe Price (TROW) reported third quarter 2009 net income, applicable to common shareholders, of $132.4 million or 50 cents per share compared to a net income of $152.4 million or 56 cents per share in the prior-year quarter. Results were ahead of the Zacks Consensus Estimate of 46 cents due to lower-than-expected operating expenses and higher assets under management.
Revenue, however, fell 10.2% to $498.1 million from $554.8 million in the year ago period. The slide was primarily due to a 10.4% decline in investment advisory fees.
Total operating expenses decreased 8.0% year-over-year to $290.8 million. The decline was primarily attributable to decreased compensation and related costs (down 6.9% year-over-year) resulting from reductions in average headcount, employee benefits costs and other employment expenses. At the end of Sep 30, 2009, the firm employed 4,762 associates, down 11.6% from the end of 2008.
Total assets under management (AUM) increased to $366.2 billion at Sep 30, 2009, up 16.0% compared to $315.6 billion at Jun 30, 2009.
The company declared a quarterly dividend of $0.24 per share.
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