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Franklin Resources (BEN) Beats on Fiscal Q4 Earnings

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Have you been eager to see how Franklin Resources, Inc. (BEN - Free Report) performed in fiscal Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this CA-based popular asset management firm’s earnings release this morning:

Earnings Beat

Franklin Resources came out with earnings per share of 82 cents, handily beating the Zacks Consensus Estimate of 69 cents. Results were aided by reduced expenses.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Franklin Resources depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last 7 days.

However, Franklin Resources has a disappointing earnings surprise history. Before posting earnings beat in fiscal Q4, the company delivered positive earnings surprise in only one of  the trailing four quarters.

FRANKLIN RESOUR Price and EPS Surprise

 

FRANKLIN RESOUR Price and EPS Surprise | FRANKLIN RESOUR Quote

Revenue Came In Lower Than Expected   

Franklin Resources posted revenues of $1.61 billion, which missed the Zacks Consensus Estimate of $1.64 billion. Also, it compared unfavorably with the year-ago number of $1.87 billion.

Key Stats to Note

Net income increased 32% year over year to $472.1 million.

Operating expenses were down 11% year over year to $1.03 billion.

Assets under management were down 5% year over year to $733.3 billion.

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Franklin Resources. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. Now it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.)

Check back later for our full write up on this Franklin Resources earnings report!

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