Franklin Resources First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Franklin Resources (NYSE:BEN) will unveil its latest earnings tomorrow, Friday, February 1, 2013.  Franklin Resources is a global investment manager that offers investment vehicles for clients, including individuals, institutions, and trusts.

Franklin Resources Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $2.38 per share, a rise of 8.2% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved up from $2.36. Between one and three months ago, the average estimate moved down. It has risen from $2.35 during the last month. Analysts are projecting profit to rise by 9.9% versus last year to $9.84.

Past Earnings Performance: Last quarter, the company beat estimates by one cent, coming in at net income of $2.31 a share versus the estimate of profit of $2.30 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the fourth quarter of the last fiscal year, profit rose 18.3% to $492.1 million ($2.30 a share) from $416 million ($1.89 a share) the year earlier, exceeding analyst expectations. Revenue rose 16.6% to $1.88 billion from $1.61 billion.

Here’s how Franklin Resources traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:

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Wall St. Revenue Expectations: On average, analysts predict $1.9 billion in revenue this quarter, a rise of 11.8% from the year-ago quarter. Analysts are forecasting total revenue of $7.85 billion for the year, a rise of 10.6% from last year’s revenue of $7.1 billion.

Stock Price Performance: From December 27, 2012 to January 28, 2013, the stock price rose $9.71 (7.7%), from $126.30 to $136.01. The stock price saw one of its best stretches over the last year between September 26, 2012 and October 5, 2012, when shares rose for eight straight days, increasing 4.9% (+$6.04) over that span. It saw one of its worst periods between July 3, 2012 and July 12, 2012 when shares fell for seven straight days, dropping 4.3% (-$4.94) over that span.

Key Stats:

The company enters this earnings announcement with steady profits recently. Net income has risen year-over-year average of 1.2% for the last four quarters.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 5.6% in the third quarter of the last fiscal year after increasing in the fourth quarter of the last fiscal year of the last fiscal year.

Analyst Ratings: With eight analysts rating the stock as a buy, one rating it as a sell and eight rating it as a hold, there are indications of a bullish outlook.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)