S&P 500 (NYSE:SPY) component Franklin Resources, Inc. (NYSE:BEN) will unveil its latest earnings on Tuesday, August 2, 2011. Franklin Resources Inc. is a global investment manager that offers investment vehicles for individuals, institutions, pension plans, trusts, partnerships and other clients.
Franklin Resources, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of $2.16 per share, a rise of 36.7% 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 $2.09. For the year, analysts are projecting profit of $8.82 per share, a rise of 39.3% from last year.
Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of $2.25 per share against the mean estimate of $2. In the prior quarter, the company reported profit of $2.23.
Wall St. Revenue Expectations: On average, analysts predict $1.84 billion in revenue this quarter, a rise of 20.3% from the year ago quarter. Analysts are forecasting total revenue of $7.19 billion for the year, a rise of 22.9% from last year’s revenue of $5.85 billion.
Analyst Ratings: Analysts are bullish on this stock with 10 analysts rating it as a buy, none rating it as a sell and seven rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.
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 23.1%, with the biggest boost coming in the third quarter of the last fiscal year when revenue rose 30.2% from the year earlier quarter.
The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 41% while it rose 40.9% in the first quarter and 1.5% in the fourth quarter of the last fiscal year.
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 21, 2011 to July 27, 2011, the stock price had dropped $7.89 (-5.9%) from $134.82 to $126.93. 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% (+$14.37) over that span. It saw one of its worst periods between July 7, 2011 and July 14, 2011 when shares fell for six-straight days, falling 5.1% (-$6.98) over that span. Shares are up $16.17 (+14.6%) year to date.
(Source: Xignite Financials)