Overview
Investment manager's fiscal Q1 operating revenue beat analyst expectations
Adjusted EPS for fiscal Q1 beat analyst expectations
Company repurchased 1.8 mln shares for $41.9 mln
Outlook
Company highlights strategic investments in alternative assets for future growth
Franklin Resources emphasizes disciplined expense management and strategic investments
Company sees diversified business model as well positioned for long-term industry trends
Result Drivers
POSITIVE NET FLOWS - Co reported $28 bln in long-term net inflows, driven by equity, multi-asset, alternatives strategies, and ETFs
ALTERNATIVES FUNDRAISING - Alternatives fundraising contributed $10.8 bln, including $9.5 bln in private market assets
ACQUISITIONS - Acquisition of Apera Asset Management added $6.1 bln to AUM, enhancing direct lending capabilities
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Operating Revenue | Beat | $2.33 bln | $1.71 bln (3 Analysts) |
Q1 Adjusted EPS | Beat | $0.70 | $0.55 (8 Analysts) |
Q1 EPS | $0.46 | ||
Q1 Adjusted Net Income | Beat | $378.4 mln | $295.82 mln (3 Analysts) |
Q1 Net Income | $255.5 mln |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 5 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for Franklin Resources Inc is $25.50, about 1.5% below its January 29 closing price of $25.88
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nBw40nnpGa
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)