Franklin Resources Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Franklin Resources (NYSE:BEN) will unveil its latest earnings on Thursday, October 25, 2012. 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 estimate of analysts is for net income of $2.28 per share, a rise of 21.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $2.19. Between one and three months ago, the average estimate moved up. It has risen from $2.20 during the last month. For the year, analysts are projecting profit of $8.95 per share, a rise of 3.8% from last year.

Past Earnings Performance: Last quarter, the company reported net income of $2.12 per share versus a mean estimate of profit of. The company has beaten estimates for the past three quarters.

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Stock Price Performance: Between July 26, 2012 and October 19, 2012, the stock price rose $22.21 (20.5%), from $108.32 to $130.53. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 26, 2012, when shares rose for nine straight days, increasing 10.8% (+$10.42) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10 straight days, dropping 14.8% (-$15.96) over that span.

A Look Back: In the third quarter, profit fell 9.6% to $455.3 million ($2.12 a share) from $503.3 million ($2.26 a share) the year earlier, but exceeded analyst expectations. Revenue fell 5.6% to $1.77 billion from $1.87 billion.

Analyst Ratings: With nine analysts rating the stock a buy, one rating it a sell and seven rating the stock a hold, there are indications of a bullish stance by analysts.

Key Stats:

On the top line, the company is looking to get back on the right track after last quarter’s drop snapped a string of revenue increases. Revenue rose 2.8% in the fourth quarter of the last fiscal year, 1.5% in the first quarter and 4.1%in the second quarter before dropping in the third quarter.

The company is hoping to rebound with this earnings release after a net income drop last quarter. Net income rose 0% in the second quarter before dropping in the third quarter.

Wall St. Revenue Expectations: Analysts are projecting a decline of 0.5% in revenue from the year-earlier quarter to $1.83 billion.

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

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