- Franklin Resources reported an adjusted EPS of 47 cents, beating the estimate of 46 cents but lower than last year’s 56 cents.
- The company’s EPS was reported at 26 cents, up from 23 cents last year.
- There were net outflows of $23.5 billion, compared to inflows of $2.1 billion last year, but better than the estimated outflows of $28.38 billion.
- Operating revenue stood at $2.11 billion, a decrease of 1.9% from last year, but exceeded the estimated $2.03 billion.
- Investment management fees contributed $1.67 billion to operating revenue, down 2.4% from the previous year, but higher than the projected $1.64 billion.
- Sales and distribution fees were $364.9 million, marking a 1.8% increase year-over-year, and beating the estimate of $348 million.
- Shareholder servicing fees were $61.9 million, a decrease of 9% from last year, slightly below the estimated $62.7 million.
- Other revenue stood at $11.0 million, a 13% reduction compared to last year, missing the estimate of $11.8 million.
- Operating expenses totaled $1.97 billion, a decline of 2.9% from last year, but higher than the estimated $1.9 billion.
- Adjusted operating income was reported at $377.2 million, down 10% year-over-year, but slightly higher than the expected $368.4 million.
- The operating margin improved to 6.9%, up from 6% the previous year.
- Assets under management were reported at $1.54 trillion, showing a quarter-over-quarter decrease of 2.2%, matching the estimated value.
- The stock consensus includes 0 buys, 8 holds, and 5 sells.
A look at Franklin Resources Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Franklin Resources, Inc., known as Franklin Templeton Investments, is a company that offers investment advisory services to a range of clients, from mutual funds to high net worth individuals. With top scores in Value and Dividend, Franklin Resources shows strength in providing good value for investors and consistent dividend payments. However, its Growth score is on the lower side, indicating slower growth potential compared to its peers. The company also demonstrates decent Resilience and Momentum, suggesting a moderate ability to withstand market fluctuations and maintain positive momentum in the near future.
Given the high scores in Value and Dividend, Franklin Resources may appeal to investors seeking stable returns and income generation. Although the Growth score is not as strong, the company’s diverse asset management offerings across various asset classes could potentially provide a solid foundation for long-term investment strategies. Overall, Franklin Resources‘ solid fundamentals in value and dividends, coupled with its varied investment options, may position it favorably for investors looking for a reliable and dividend-paying addition to their portfolios.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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