The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how T. Rowe Price NASDAQ:TROW and the rest of the custody bank stocks fared in Q1.
Custody banks safeguard financial assets and provide services like settlement, accounting, and regulatory compliance for institutional investors. Growth opportunities stem from increasing global assets under custody, demand for data analytics, and blockchain technology adoption for settlement efficiency. Challenges include fee pressure from large clients, substantial technology investment requirements, and competition from both traditional players and fintech firms entering the space.
The 16 custody bank stocks we track reported a strong Q1. As a group, revenues beat analysts’ consensus estimates by 2.5%.
In light of this news, share prices of the companies have held steady as they are up 4.8% on average since the latest earnings results.
T. Rowe Price NASDAQ:TROW
Founded in 1937 by Thomas Rowe Price Jr., who pioneered the growth stock investing approach, T. Rowe Price NASDAQ:TROW is an investment management firm that offers mutual funds, advisory services, and retirement planning solutions to individuals and institutions.
T. Rowe Price reported revenues of $1.86 billion, up 4.8% year on year. This print fell short of analysts’ expectations by 1%. Overall, it was a mixed quarter for the company with a beat of analysts’ EPS estimates but a slight miss of analysts’ AUM estimates.
Interestingly, the stock is up 9.6% since reporting and currently trades at $110.11.
Best Q1: Franklin Resources NYSE:BEN
Operating under the widely recognized Franklin Templeton brand since 1947, Franklin Resources NYSE:BEN is a global investment management organization that offers financial services and solutions to individuals, institutions, and wealth advisors worldwide.
Franklin Resources reported revenues of $2.29 billion, up 8.7% year on year, outperforming analysts’ expectations by 11.8%. The business had an incredible quarter with a beat of analysts’ EPS and AUM estimates.
The market seems happy with the results as the stock is up 18.6% since reporting. It currently trades at $32.69.
Slowest Q1: Hamilton Lane NASDAQ:HLNE
With over $100 billion in assets under management and supervision, Hamilton Lane NASDAQ:HLNE is an investment management firm that specializes in private markets, offering advisory services and fund solutions to institutional and private wealth investors.
Hamilton Lane reported revenues of $193.6 million, down 2.2% year on year, falling short of analysts’ expectations by 3.4%. It was a slower quarter, leaving some shareholders looking for more.
Hamilton Lane delivered the slowest revenue growth in the group. As expected, the stock is down 7.9% since the results and currently trades at $78.43.
Voya Financial NYSE:VOYA
Originally spun off from Dutch financial giant ING in 2013 and rebranded with a name suggesting "voyage," Voya Financial NYSE:VOYA provides workplace benefits and savings solutions to U.S. employers, helping their employees achieve better financial outcomes through retirement plans and insurance products.
Voya Financial reported revenues of $1.93 billion, up 2.3% year on year. This number beat analysts’ expectations by 15.4%. It was a stunning quarter as it also logged a beat of analysts’ EPS estimates.
Voya Financial pulled off the biggest analyst estimate beat among its peers. The stock is up 8% since reporting and currently trades at $89.76.
State Street NYSE:STT
Dating back to 1792 when Boston's Long Wharf was the center of global shipping and trade, State Street NYSE:STT provides custody, investment management, and other financial services to institutional investors like pension funds, asset managers, and central banks worldwide.
State Street reported revenues of $3.80 billion, up 15.6% year on year. This print topped analysts’ expectations by 3.3%. Overall, it was a very strong quarter as it also recorded a beat of analysts’ EPS estimates.
The stock is up 21.3% since reporting and currently trades at $172.16.