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Franklin Resources (BEN) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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Franklin Resources (BEN - Free Report) reported $1.99 billion in revenue for the quarter ended September 2023, representing a year-over-year increase of 2.4%. EPS of $0.84 for the same period compares to $0.78 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.87 billion, representing a surprise of +6.23%. The company delivered an EPS surprise of +40.00%, with the consensus EPS estimate being $0.60.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

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: $-8.5 billion compared to the $-8.34 billion average estimate based on three analysts.
  • Assets Under Management - Fixed income: $483.1 billion versus $510.14 billion estimated by three analysts on average.
  • Assets Under Management - Multi-Asset: $145 billion versus the three-analyst average estimate of $149.91 billion.
  • Assets Under Management - Equity: $430.4 billion versus the three-analyst average estimate of $447.08 billion.
  • Assets Under Management - Total: $1,374.2 billion compared to the $1,436.23 billion average estimate based on three analysts.
  • Assets Under Management - Alternative: $254.9 billion compared to the $263.59 billion average estimate based on three analysts.
  • Assets Under Management - Cash Management: $60.8 billion compared to the $65.52 billion average estimate based on three analysts.
  • EOP Net Flows - Alternatives: $0.8 billion versus $2.68 billion estimated by two analysts on average.
  • Operating Revenues- Other: $8.10 million compared to the $11.34 million average estimate based on four analysts. The reported number represents a change of -25% year over year.
  • Operating Revenues- Investment management fees: $1.63 billion compared to the $1.48 billion average estimate based on four analysts. The reported number represents a change of +4% year over year.
  • Operating Revenues- Shareholder servicing fees: $37.20 million versus $41.96 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -19.5% change.
  • Operating Revenues- Sales and distribution fees: $306.40 million compared to the $305.86 million average estimate based on three analysts. The reported number represents a change of -1.5% year over year.
View all Key Company Metrics for Franklin Resources here>>>

Shares of Franklin Resources have returned -7% over the past month versus the Zacks S&P 500 composite's -2.8% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.

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