Franklin Resources Inc. Earnings Cheat Sheet: Increased Profit Helps Beat the Street

S&P 500 (NYSE:SPY) component Franklin Resources Inc. (NYSE:BEN) reported net income above Wall Street’s expectations for the fourth quarter. Franklin Resources is a global investment manager that offers investment vehicles for clients, including individuals, institutions, and trusts.

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Franklin Resources Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for the asset management company rose to $416 million ($1.88 per share) vs. $372.9 million ($1.65 per share) in the same quarter a year earlier. This marks a rise of 11.6% from the year earlier quarter.

Revenue: Rose 20% to $1.84 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BEN fell short of the mean analyst estimate of $1.99 per share. Analysts were expecting revenue of $1.85 billion.

Key Stats:

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 20%, with the biggest boost coming in the third quarter when revenue rose 23.9% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the third quarter, net income rose 39.6% and in the second quarter, the figure rose 41%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 10 cents in the third quarter, by 25 cents in the second quarter, and by 32 cents in the first quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the first quarter of the next fiscal year is $2.04 per share, down from $2.33 ninety days ago. Over the past sixty days, the average estimate for the fiscal year has reached $8.65 abs per share, a decline from $8.93.

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), and Ameriprise Financial, Inc. (NYSE:AMP).

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(Source: Xignite Financials)

 

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