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Compared to Estimates, Franklin Resources (BEN) Q2 Earnings: A Look at Key Metrics

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For the quarter ended March 2024, Franklin Resources (BEN - Free Report) reported revenue of $2.15 billion, up 11.7% over the same period last year. EPS came in at $0.56, compared to $0.61 in the year-ago quarter.

The reported revenue represents a surprise of +3.04% over the Zacks Consensus Estimate of $2.09 billion. With the consensus EPS estimate being $0.57, the EPS surprise was -1.75%.

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.

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:

  • Assets Under Management - Total: $1,374.2 billion compared to the $1,549.45 billion average estimate based on three analysts.
  • Assets Under Management - Fixed income: $483.1 billion versus the three-analyst average estimate of $550.42 billion.
  • Assets Under Management - Equity: $430.4 billion compared to the $499 billion average estimate based on three analysts.
  • Assets Under Management - Alternative: $254.9 billion versus the three-analyst average estimate of $267.92 billion.
  • Assets Under Management - Multi-Asset: $145 billion versus $164.38 billion estimated by three analysts on average.
  • Assets Under Management - Cash Management: $60.8 billion versus the three-analyst average estimate of $67.74 billion.
  • Total Net Flows: $2.1 billion versus the three-analyst average estimate of $-1.95 billion.
  • EOP Net Flows - Fixed Income: $8.3 billion compared to the $1.93 billion average estimate based on two analysts.
  • Operating Revenues- Investment management fees: $1.71 billion versus the four-analyst average estimate of $1.63 billion. The reported number represents a year-over-year change of +8.9%.
  • Operating Revenues- Other: $12.60 million versus $16.48 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +37% change.
  • Operating Revenues- Shareholder servicing fees: $68 million compared to the $45.76 million average estimate based on four analysts. The reported number represents a change of +57% year over year.
  • Operating Revenues- Sales and distribution fees: $358.30 million compared to the $312.60 million average estimate based on three analysts. The reported number represents a change of +18.9% year over year.
View all Key Company Metrics for Franklin Resources here>>>

Shares of Franklin Resources have returned -11.1% over the past month versus the Zacks S&P 500 composite's -2% 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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