BUZZ-T Rowe falls on Q4 profit miss

Shares of investment manager T Rowe Price TROW.O fall more than 3% in premarket trading

Co reports Q4 adjusted profit of $2.12 per share, missing Wall Street estimates of $2.20 per share, according to data compiled by LSEG

Assets under management expand 19.2% to $1.64 trillion in the quarter, despite $19.3 billion of net outflows

Total net outflows for the year are $43.2 billion

Investors have been opting for low-cost offerings of passively managed funds over active managers such as T Rowe

Co has reported 15 consecutive quarters of capital outflows

Investment advisory fees, the primary driver of co's revenue, rises 16.1% to $1.67 billion in the quarter

Stock up around 2.2% YTD, as of previous close; It rose ~5% in 2024

Peers Invesco IVZ.N and Franklin Templeton BEN.N beat profit estimates last week, helped by rising investment fees as their AUMs expanded