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Franklin Resources (BEN) Q2 Earnings Beat Estimate, AUM Down

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Have you been eager to see how Franklin Resources (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 78 cents, beating the Zacks Consensus Estimate of 75 cents. Higher revenues were primarily responsible for the 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 seven days.

Further, Franklin Resources has a decent earnings surprise history. Before posting earnings beat in fiscal Q2, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 8.34% in the trailing four quarters.

Franklin Resources, Inc. Price and EPS Surprise

Revenues Came In More Than Expected   

Franklin Resources posted revenues of $1.62 billion, which surpassed the Zacks Consensus Estimate of $1.59 billion. Also, it compared favorably with the year-ago number of $1.60 billion.

Key Stats to Note:

  • Operating expenses were up 2% year over year
  • Operating Margin contracted 4 basis points year over year
  • Assets Under Management were down slightly year over year
     

What Zacks Rank Says

Franklin Resources is currently carrying a Zacks Rank #4 (Sell). 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!

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