Back to top

Image: Bigstock

Franklin (BEN) Beat Fiscal Q2 Earnings and Revenue Estimates

Read MoreHide Full Article

Have you been eager to see how Franklin Resources Inc. (BEN - Free Report) performed in fiscal Q2 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:

An Earnings Beat

Franklin Resources came out with earnings per share of 74 cents, outpacing the Zacks Consensus Estimate of 67 cents. Lower operating expenses were responsible for this earnings beat.

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 decent earnings surprise history. Before posting earnings beat in fiscal Q2, the company delivered three positive surprises out of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 11.8% in the trailing four quarters.
 

Revenue Came In Higher Than Expected    

Franklin Resources posted revenues of $1.60 billion, which surpassed the Zacks Consensus Estimate of $1.57 billion. Yet, it compared unfavorably with the year-ago number of $1.61 billion.

Key Stats to Note:

  • Operating expenses were down 3% year over year
  • Revenues were down 1% year over year
  • Assets Under Management were down slightly year over year

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. While things apparently look favorable, 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 Rank (Strong Buy) stocks here.)

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

The Best & Worst of Zacks

Today you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buys" free of charge. From 1988 through 2015 this list has averaged a stellar gain of +25% per year. Plus, you may download 220 Zacks Rank #5 "Strong Sells." Even though this list holds many stocks that seem to be solid, it has historically performed 6X worse than the market. See these critical buys and sells free >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Franklin Resources, Inc. (BEN) - free report >>

Published in