- Franklin Resources reported third-quarter adjusted earnings per share (EPS) of 49 cents, slightly beating estimates of 48 cents, but down from 60 cents year-over-year (y/y).
- The actual EPS for the quarter was 15 cents, compared to 32 cents y/y.
- There were net outflows of $6.6 billion, which was better than the estimated outflows of $8.71 billion, but much higher than $200 million outflows y/y.
- Operating revenue came in at $2.06 billion, a decline of 2.8% compared to last year and slightly below the estimated $2.09 billion.
- Investment management fees generated operating revenue of $1.64 billion, down 2.9% y/y, close to the expected $1.65 billion.
- Sales and distribution fees amounted to $351.9 million, a 1.8% decrease y/y, slightly missing the estimate of $355.9 million.
- Shareholder servicing fees were $59.9 million, down 3.1% y/y, below the projected $60.7 million.
- Other revenue totaled $11.4 million, a 12% drop y/y, and under the estimated $11.7 million.
- Operating expenses increased by 0.5% y/y to $1.91 billion, which was lower than the estimate of $1.96 billion.
- The company reported adjusted operating income of $377.8 million, an 11% decrease y/y, but higher than the anticipated $360.9 million.
- Operating margin for the quarter was 7.5%, down from 10.5% y/y but better than the estimated 5.71%.
- Assets under management rose by 4.6% quarter-over-quarter (q/q) to $1.61 trillion, meeting expectations.
- Current stock ratings include 2 buys, 5 holds, and 5 sells.
A look at Franklin Resources Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 5 | |
| 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, offers investment advisory services to a wide range of investors, including mutual fund, retirement, institutional, and high net worth individuals. The company manages diverse asset classes such as global equity, fixed income, money funds, and alternative investments. Taking a look at the Smartkarma Smart Scores for Franklin Resources, the company displays strong performance in several key areas. With a high dividend score of 5 and robust momentum score of 5, Franklin Resources showcases stability and a positive growth trajectory. While the growth score may be lower at 2, the overall outlook appears promising due to solid value and resilience scores at 4 and 3 respectively. This indicates a company that offers potential value and consistent performance over the long term.
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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