Franklin Resources

Franklin Resources, Inc. Announces Second Quarter Results SAN MATEO, Calif.–(BUSINESS WIRE)–April 29, 2024– Franklin Resources, Inc. (the “Company”) (NYSE: BEN) today announced net income(1) of $124.2 million or $0.23 per diluted share for the quarter ended March 31, 2024, as compared to $251.3 million or $0.50 per diluted share for the previous quarter, and $194.2 million or $0.38 per diluted share for the quarter ended March 31, 2023. Operating income was $129.3 million for the quarter ended March 31, 2024, as compared to $206.5 million for the previous quarter and $255.1 million for the prior year. As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles. Adjusted net income(2) was $306.6 million and adjusted diluted earnings per share(2) was $0.56 for the quarter ended March 31, 2024, as compared to $328.5 million and $0.65 for the previous quarter, […]

The following is a summary of the Franklin Resources, Inc. (BEN) Q1 2024 Earnings Call Transcript: Financial Performance: Franklin ended the quarter with assets under management (AUM) of $1.64 trillion, a significant increase from both the previous quarter and same quarter last year. Investment performance remained strong across all measurement periods. Franklin reported long-term net flows of $6.9 billion in the quarter, with a large portion being from reinvested distributions. Adjusted operating income was $419.6 million, which is a slight increase from the prior quarter but a decrease from the prior year quarter. Increasing expenses and a slightly raised expense guidance were reported due to performance fee increases and compensation calendar resets. The company’s Effective Fee Rate was at 38.5 basis points for the quarter. Business Progress: Franklin saw positive net flows in non-US regions and high demand in private markets and alternative assets. The acquisition of Putnam contributed positively

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We cut our 12-month target by $5 to $25, valuing BEN shares at 8.7x our FY 26 (Sep.) adjusted EPS estimate of $2.87 and 9.4x our FY 25 EPS estimate of $2.65, versus the three-year average forward multiple of 9.8x and a peer average of 12.1x. We cut our FY 24 EPS estimate by $0.10 to $2.40. Mar-Q EPS of $0.56 versus $0.65, was comparable to our $0.60 EPS estimate and the $0.57 consensus view, on 12% higher revenues (aided by the Putnam acquisition), offset by a 370-basis point operating margin contraction (to 25.2%) on a 21% rise in operating expenses. Assets under management rose 16% year-over-year to $1.64T, and fund flows improved (to $2.1B of inflows versus outflows of $8B a year ago), though core equities

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our 12-month target price by $2 to $30, valuing BEN shares at 10.5x our FY26 (Sep.) EPS estimate of $2.87, 11.3x our FY25 EPS estimate of $2.65, and 12x our FY24 EPS estimate of $2.50. This compares to BEN’s 3-year average forward multiple of 9.7x and the broader asset management and private equity peer group average of 16.6x. After a 5% revenue decline in FY23, we look for revenues to be flat to up 5% in FY24 and FY25. However, BEN has been acquisitive in recent years and could alter its top line growth trajectory with a deal. We do not, however, foresee much organic revenue growth, as BEN remains beset with asset outflows, like the $17B in FY 23 and $28.6B in FY22. Weighing

Goldman Sachs analyst Alexander Blostein maintains Franklin Resources with a Sell and raises the price target from $26.25 to $26.75.

Franklin Resources (NYSE:BEN) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/30/2024 10.93% BMO Capital $27 → $30 Maintains Market Perform 01/19/2024 -11.26% Morgan Stanley $22 → $24 Maintains Underweight 01/10/2024 10.93% UBS $26 → $30 Maintains Neutral 01/08/2024 10.93% Wells Fargo $24 → $30 Upgrades Underweight → Equal-Weight 01/04/2024 18.32% TD Cowen → $32 Initiates Coverage On → Market Perform 11/02/2023 -18.65% Morgan Stanley $23 → $22 Maintains Underweight 10/11/2023 -11.26% Deutsche Bank $26 → $24 Maintains Hold 10/06/2023 -14.96% Morgan Stanley $24 → $23 Maintains Underweight 08/08/2023 -11.26% Morgan Stanley $23 → $24 Maintains Underweight 08/01/2023 -9.41% Goldman Sachs $21.5 → $24.5 Maintains Sell 07/31/2023 -9.41% Goldman Sachs $21.5 → $24.5 Maintains Sell 07/31/2023 -0.17% BMO Capital $24 → $27 Maintains Market Perform 07/25/2023 -14.96% Morgan Stanley $23 → $23 Reiterates Underweight → Underweight 07/13/2023 -3.86% Wells Fargo $25.5 →

The following is a summary of the Franklin Resources, Inc. (BEN) Q1 2024 Earnings Call Transcript: Financial Performance: Franklin Resources reported an effective fee rate of 39.7 basis points, higher than the expected 39 basis points, due to Lexington catch-up fees. Total compensation and benefits, including Putnam, are expected to be around $815 million for the second fiscal quarter. Fiscal year 2024 is forecast to see a 1-2% increase from 2023, excluding Putnam. With Putnam included, but excluding performance fees, the total adjusted operating expenses for FY 2024 are expected to be around $4.55 billion to $4.6 billion. The firm expects to save between $85 million to $100 million on expenses by end of fiscal 2024 and at least $150 million by end of 2025. Q1 2024 saw a 6% increase in Assets Under Management (AUM), reaching $1.46 trillion. Business Progress: Franklin Resources closed on the acquisition of Putnam on

Franklin Resources, Inc. Announces First Quarter Results SAN MATEO, Calif.–(BUSINESS WIRE)–January 29, 2024– Franklin Resources, Inc. (the “Company”) [NYSE: BEN] today announced net income(1) of $251.3 million or $0.50 per diluted share for the quarter ended December 31, 2023, as compared to $295.5 million or $0.58 per diluted share for the previous quarter, and $165.6 million or $0.32 per diluted share for the quarter ended December 31, 2022. Operating income was $206.5 million for the quarter ended December 31, 2023, as compared to $338.3 million for the previous quarter and $194.0 million for the prior year. As supplemental information, the Company is providing certain adjusted performance measures which are based on methodologies other than generally accepted accounting principles. Adjusted net income(2) was $328.5 million and adjusted diluted earnings per share(2) was $0.65 for the quarter ended December 31, 2023, as compared to $427.0 million and $0.84 for the previous quarter,

Franklin Resources (NYSE:BEN) reported quarterly Adj earnings of $0.65 per share which beat the analyst consensus estimate of $0.57 by 14.04 percent. This is a 27.45 percent increase over earnings of $0.51 per share from the same period last year. The company reported quarterly sales of $1.99 billion which beat the analyst consensus estimate of $1.52 billion by 31.25 percent. This is a 1.22 percent increase over sales of $1.97 billion the same period last year.

Franklin Resources (BEN) reported fiscal Q1 adjusted earnings Monday of $0.65 per diluted share, up from $0.51 a year earlier. Analysts polled by Capital IQ expected $0.58. Revenue for the quarter ended Dec. 31 was $1.99 billion, compared with $1.97 billion a year earlier. Analysts surveyed by Capital IQ expected $1.91 billion. Shares of Franklin Resources were up 5.8% in recent premarket activity on Monday.

Franklin Resources (NYSE:BEN) Stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/19/2024 -13.85% Morgan Stanley $22 → $24 Maintains Underweight 01/10/2024 7.68% UBS $26 → $30 Maintains Neutral 01/08/2024 7.68% Wells Fargo $24 → $30 Upgrades Underweight → Equal-Weight 01/04/2024 14.86% TD Cowen → $32 Initiates Coverage On → Market Perform 11/02/2023 -21.03% Morgan Stanley $23 → $22 Maintains Underweight 10/11/2023 -13.85% Deutsche Bank $26 → $24 Maintains Hold 10/06/2023 -17.44% Morgan Stanley $24 → $23 Maintains Underweight 08/08/2023 -13.85% Morgan Stanley $23 → $24 Maintains Underweight 08/01/2023 -12.06% Goldman Sachs $21.5 → $24.5 Maintains Sell 07/31/2023 -12.06% Goldman Sachs $21.5 → $24.5 Maintains Sell 07/31/2023 -3.09% BMO Capital $24 → $27 Maintains Market Perform 07/25/2023 -17.44% Morgan Stanley $23 → $23 Reiterates Underweight → Underweight 07/13/2023 -6.68% Wells Fargo $25.5 → $26 Maintains Underweight 07/12/2023 -17.44% Morgan Stanley $23 → $23

Franklin Resources (NYSE:BEN) stock Analyst Ratings Date Upside/Downside Analyst Firm Price Target Change Rating Change Previous / Current Rating 01/10/2024 3.27% UBS $26 → $30 Maintains Neutral 01/08/2024 3.27% Wells Fargo $24 → $30 Upgrades Underweight → Equal-Weight 01/04/2024 10.15% TD Cowen → $32 Initiates Coverage On → Market Perform 11/02/2023 -24.27% Morgan Stanley $23 → $22 Maintains Underweight 10/11/2023 -17.38% Deutsche Bank $26 → $24 Maintains Hold 10/06/2023 -20.83% Morgan Stanley $24 → $23 Maintains Underweight 08/08/2023 -17.38% Morgan Stanley $23 → $24 Maintains Underweight 08/01/2023 -15.66% Goldman Sachs $21.5 → $24.5 Maintains Sell 07/31/2023 -15.66% Goldman Sachs $21.5 → $24.5 Maintains Sell 07/31/2023 -7.06% BMO Capital $24 → $27 Maintains Market Perform 07/25/2023 -20.83% Morgan Stanley $23 → $23 Reiterates Underweight → Underweight 07/13/2023 -10.5% Wells Fargo $25.5 → $26 Maintains Underweight 07/12/2023 -20.83% Morgan Stanley $23 → $23 Reiterates Underweight → Underweight 07/10/2023 -17.38% BMO Capital $20