S&P 500 (NYSE:SPY) component Franklin Resources Inc. (NYSE:BEN) reported higher profit for the third quarter as revenue showed growth. Franklin Resources Inc. is a global investment manager that offers investment vehicles for individuals, institutions, pension plans, trusts, partnerships and other clients.
Franklin Resources Earnings Cheat Sheet for the Third Quarter
Results: Net income for the asset management company rose to $503.3 million ($2.26 per share) vs. $360.5 million ($1.58 per share) in the same quarter a year earlier. This marks a rise of 39.6% from the year earlier quarter.
Revenue: Rose 20.8% to $1.85 billion from the year earlier quarter.
Actual vs. Wall St. Expectations: BEN beat the mean analyst estimate of $2.16 per share. Analysts were expecting revenue of $1.84 billion.
The company has enjoyed double-digit year-over-year percentage revenue growth for the past five quarters. Over that span, the company has averaged growth of 23%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 30.2% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 41% and in the first quarter, the figure rose 40.9%.
The company has now topped analyst estimates for the last three quarters. It beat the mark by 25 cents in the second quarter and by 32 cents in the first quarter.
Competitors to Watch: Federated Investors, Inc. (NYSE:FII), Cohen & Steers, Inc. (NYSE:CNS), Calamos Asset Management, Inc (NASDAQ:CLMS), U.S. Global Investors, Inc. (NASDAQ:GROW), Waddell & Reed Financial, Inc. (NYSE:WDR), T. Rowe Price Group, Inc. (NASDAQ:TROW), Janus Capital Group Inc. (NYSE:JNS), Virtus Investment Partners, Inc. (NASDAQ:VRTS), BlackRock, Inc. (NYSE:BLK), Bank of America (NYSE:BAC), JP Morgan (NYSE:JPM), Citigroup (NYSE:C) and Ameriprise Financial, Inc. (NYSE:AMP).
(Source: Xignite Financials)