- Franklin Resources‘ third-quarter adjusted EPS is $0.60, beating the estimate of $0.56, but down from $0.63 year-over-year.
- EPS dropped to $0.32 from $0.44 compared to the same period last year.
- The company experienced net outflows of $200 million, a significant decrease from the expected inflows of $1.4 billion and down 97% year-over-year.
- Operating revenue for the quarter was $2.12 billion, up 7.8% year-over-year but slightly below the estimate of $2.15 billion.
- Revenue from investment management fees increased 4.7% year-over-year to $1.69 billion, missing the estimate of $1.73 billion.
- Sales and distribution fees rose 18% year-over-year to $358.3 million, narrowly beating the estimate of $357.5 million.
- Shareholder servicing fees saw a substantial increase of 59% year-over-year, totaling $61.8 million, surpassing the estimate of $58.9 million.
- Revenue from other sources was $12.9 million, a marginal increase of 0.8% year-over-year and above the estimated $11.8 million.
- Operating expenses were $1.90 billion, up 15% year-over-year, aligning with the estimated $1.9 billion.
- Adjusted operating income fell 11% year-over-year to $424.9 million, slightly above the estimate of $424.3 million.
- The operating margin declined to 10.5% from 16% year-over-year, but exceeded the estimated 10.1%.
- Assets under management held steady at $1.65 trillion, a 0.1% increase quarter-over-quarter, meeting the estimate of $1.65 trillion.
- Analyst recommendations include 0 buys, 8 holds, and 6 sells.
A look at Franklin Resources Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
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
Analysts at Smartkarma have assessed Franklin Resources, known as Franklin Templeton Investments, using their Smart Scores system. The company has received a strong rating for its dividend and a solid score for its value proposition, indicating a positive long-term outlook in these areas. While the growth, resilience, and momentum scores are slightly lower, Franklin Resources still shows promise for investors seeking steady returns.
Franklin Resources, operating under the name Franklin Templeton Investments, is a firm that offers investment advisory services across various asset classes. With a favorable dividend score and a solid value rating, the company appears well-positioned to cater to a range of investors, including those focused on income generation. Although there are areas for potential improvement like growth and momentum, Franklin Resources‘ established presence in the industry bodes well for its future performance.
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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