Franklin Resources Inc. Earnings: Streak of Four Straight Profit Rises Snapped

S&P 500 (NYSE:SPY) component Franklin Resources Inc. (NYSE:BEN) reported its results for the first 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 First Quarter

Results: Net income for the asset management company fell to $480.8 million ($2.20 per share) vs. $501.2 million ($2.23 per share) a year earlier. This is a decline of 4.1% from the year earlier quarter.

Revenue: Rose 0.1% to $1.7 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: BEN beat the mean analyst estimate of $2.10 per share. Analysts were expecting revenue of $1.7 billion.

Key Stats:

Last quarter’s profit decrease breaks a streak of four consecutive quarters of year-over-year profit increases. In the fourth quarter of the last fiscal year, net income rose 11.5% from the year earlier, while the figure increased 39.6% in the third quarter of the last fiscal year, 41% in the second quarter of the last fiscal year and 40.9% in the first quarter of the last fiscal year.

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of $1.88 versus a mean estimate of net income of $1.99 per share.

Looking Forward: Expectations for the company’s next quarter results are lower than they have been. Over the past sixty days, the average estimate for second quarter has fallen from $2.13 per share to $2.08. The average estimate for the fiscal year is now $8.55 per share, down from $8.76 sixty days ago.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com