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T Rowe Price posts higher 3Q profit, revenue

The Associated Press

NEWS: Investment firm T. Rowe Price Group Inc.'s third-quarter net income jumped 9 percent as investment advisory and other fees increased. The results topped Wall Street estimates.

DETAILS: Investment advisory revenue grew to $768.3 million from $661.4 million, as average assets under management increased 14 percent. Total assets under management climbed to $647.2 billion from $576.8 billion at the end of December. The company noted that most of the net cash outflows were concentrated among certain institutional and intermediary clients that changed their investment objectives or repositioned their strategy allocations.

NUMBERS: Net income grew to $270.3 million, or $1 per share, for the three months ended Sept. 30. That's up from $247.3 million, or 94 cents per share, a year earlier. Revenue increased to $884.4 million from $769.7 million. Analysts polled by FactSet expected earnings of 97 cents per share on revenue of $871.9 million.

STOCK: Shares in the Baltimore company fell $3.10, or 4 percent, to $74.74 in afternoon trading. Shares are up about 15 percent this year.