Franklin Resources Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Franklin Resources, Inc. (NYSE:BEN) will unveil its latest earnings on Thursday, October 27, 2011. Franklin Resources is a global investment manager that offers investment vehicles for clients, including individuals, institutions, and trusts.

Franklin Resources, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.99 per share, a rise of 20.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $2.24. Between one and three months ago, the average estimate moved down. It also has dropped from $2.22 during the last month. Analysts are projecting profit to rise by 36.7% versus last year to $8.65.

Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked net income of $2.26 per share versus a mean estimate of profit of $2.16 per share.

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Wall St. Revenue Expectations: On average, analysts predict $1.85 billion in revenue this quarter, a rise of 20.9% from the year ago quarter. Analysts are forecasting total revenue of $7.15 billion for the year, a rise of 22.2% from last year’s revenue of $5.85 billion.

Analyst Ratings: Analysts are bullish on this stock with nine analysts rating it as a buy, one rating it as a sell and five rating it as a hold.

A Look Back: In the third quarter, profit rose 39.6% to $503.3 million ($2.26 a share) from $360.5 million ($1.58 a share) the year earlier, exceeding analyst expectations. Revenue rose 23.9% to $1.87 billion from $1.51 billion.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 20.8%, with the biggest boost coming in the most recent quarter when revenue rose 23.9% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 41% in the second quarter and 40.9% 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), and Ameriprise Financial, Inc. (NYSE:AMP).

Stock Price Performance: During July 29, 2011 to October 24, 2011, the stock price had fallen $20.38 (-16.1%) from $126.65 to $106.27. The stock price saw one of its best stretches over the last year between June 24, 2011 and July 7, 2011 when shares rose for nine-straight days, rising 11.7% (+$14.33) over that span. It saw one of its worst periods between September 15, 2011 and September 22, 2011 when shares fell for six-straight days, falling 19.4% (-$23.22) over that span. Shares are down $4.21 (-3.8%) year to date.

(Source: Xignite Financials)

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