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Franklin Resources (BEN) Q3 Earnings Meet Expectations

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Have you been eager to see how Franklin Resources Inc. (BEN - Free Report) performed in fiscal Q3 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:

In Line Earnings

Franklin Resources came out with earnings per share of 75 cents, in line with the Zacks Consensus Estimate. Lower revenues and assets under management along with elevated expenses were recorded.

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 in line earnings in fiscal Q3, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 6.72% in the trailing four quarters.
 

Revenue Came In Lower Than Expected    

Franklin Resources posted revenues of $1.56 billion, lagging the Zacks Consensus Estimate of $1.58 billion. Moreover, it compared unfavorably with the year-ago number of $1.61 billion.

Key Stats to Note:

 

  • Operating expenses were up 1% year over year
  • Revenues were down 3% year over year
  • Assets Under Management were down 3% 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. 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.)

How the Market Reacted So Far

Following the earnings release, Franklin shares were down more than 1% in the pre-trading session. This is in line with what the stock witnessed in the prior-day’s session. Clearly, the initial reaction shows that the investors have not considered the results in their favor. However, the full-session’s price movement may indicate a different picture.

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

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