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Franklin Resources (BEN) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
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For the quarter ended June 2023, Franklin Resources (BEN - Free Report) reported revenue of $1.97 billion, down 3.1% over the same period last year. EPS came in at $0.63, compared to $0.82 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.9 billion, representing a surprise of +3.50%. The company delivered an EPS surprise of +5.00%, with the consensus EPS estimate being $0.60.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Franklin Resources performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Net Flows: $-7.1 billion compared to the $-8.6 billion average estimate based on three analysts.
Assets Under Management - Fixed income: $505.1 billion compared to the $513.1 billion average estimate based on three analysts.
Assets Under Management - Multi-Asset: $148.3 billion compared to the $147.5 billion average estimate based on three analysts.
Assets Under Management - Equity: $458 billion versus $434.9 billion estimated by three analysts on average.
Assets Under Management - Total: $1431.5 billion versus $1422.6 billion estimated by three analysts on average.
Assets Under Management - Alternative: $257.2 billion versus $259.3 billion estimated by three analysts on average.
Assets Under Management - Cash Management: $62.9 billion compared to the $67.7 billion average estimate based on three analysts.
EOP Net Flows - Alternatives: $4 billion compared to the $3.1 billion average estimate based on two analysts.
Operating Revenues- Shareholder servicing fees: $38.80 million compared to the $38.80 million average estimate based on four analysts. The reported number represents a change of -17.3% year over year.
Operating Revenues- Other: $12.80 million versus $10.24 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.
Operating Revenues- Sales and distribution fees: $304 million compared to the $301.43 million average estimate based on three analysts. The reported number represents a change of -9.4% year over year.
Operating Revenues- Investment management fees: $1.61 billion compared to the $1.47 billion average estimate based on three analysts. The reported number represents a change of -1.4% year over year.
Shares of Franklin Resources have returned +6% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Franklin Resources (BEN) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates
For the quarter ended June 2023, Franklin Resources (BEN - Free Report) reported revenue of $1.97 billion, down 3.1% over the same period last year. EPS came in at $0.63, compared to $0.82 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $1.9 billion, representing a surprise of +3.50%. The company delivered an EPS surprise of +5.00%, with the consensus EPS estimate being $0.60.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Franklin Resources performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total Net Flows: $-7.1 billion compared to the $-8.6 billion average estimate based on three analysts.
- Assets Under Management - Fixed income: $505.1 billion compared to the $513.1 billion average estimate based on three analysts.
- Assets Under Management - Multi-Asset: $148.3 billion compared to the $147.5 billion average estimate based on three analysts.
- Assets Under Management - Equity: $458 billion versus $434.9 billion estimated by three analysts on average.
- Assets Under Management - Total: $1431.5 billion versus $1422.6 billion estimated by three analysts on average.
- Assets Under Management - Alternative: $257.2 billion versus $259.3 billion estimated by three analysts on average.
- Assets Under Management - Cash Management: $62.9 billion compared to the $67.7 billion average estimate based on three analysts.
- EOP Net Flows - Alternatives: $4 billion compared to the $3.1 billion average estimate based on two analysts.
- Operating Revenues- Shareholder servicing fees: $38.80 million compared to the $38.80 million average estimate based on four analysts. The reported number represents a change of -17.3% year over year.
- Operating Revenues- Other: $12.80 million versus $10.24 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +0.8% change.
- Operating Revenues- Sales and distribution fees: $304 million compared to the $301.43 million average estimate based on three analysts. The reported number represents a change of -9.4% year over year.
- Operating Revenues- Investment management fees: $1.61 billion compared to the $1.47 billion average estimate based on three analysts. The reported number represents a change of -1.4% year over year.
View all Key Company Metrics for Franklin Resources here>>>Shares of Franklin Resources have returned +6% over the past month versus the Zacks S&P 500 composite's +3.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.