Markets
BEN

Franklin (BEN) Fiscal Q1 Earnings Beat on Lower Costs

Have you been eager to see how Franklin Resources Inc.BEN performed in fiscal Q1 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 77 cents, outpacing the Zacks Consensus Estimate of 68 cents. Lower operating expenses were responsible for this earnings 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 7 days.

However, Franklin Resources has a decent earnings surprise history. Before posting earnings beat in fiscal Q1, the company delivered two positive surprises out of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 8.1% in the trailing four quarters.

Franklin Resources, Inc. Price and EPS Surprise

Franklin Resources, Inc. Price and EPS Surprise | Franklin Resources, Inc. Quote

Revenue Came In Lower Than Expected

Franklin Resources posted revenues of $1.56 billion, which lagged the Zacks Consensus Estimate of $1.58 billion. Further, it compared unfavorably with the year-ago number of $1.76 billion.

Key Stats to Note:

  • Operating expenses were down 12% year over year
  • Revenues were down 11% year over year
  • Assets Under Management were down 6% 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. 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!

The Best Place to Start Your Stock Search

Today, you are invited to download the full, up-to-the-minute list of 220 Zacks Rank #1 "Strong Buy" stocks - absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 "Strong Sells" and other private research. See these stocks free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Franklin Resources, Inc. (BEN): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

BEN

Other Topics

Earnings Investing Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More