Shares of Franklin Resources (BEN) tumbled 5.50% in pre-market trading on Friday following the release of its third-quarter financial results. The investment management company reported mixed performance, with earnings beating estimates but revenue falling short of expectations.

Franklin Resources posted an adjusted earnings per share of $0.49, surpassing the analyst consensus of $0.48. However, this represents an 18.33% decrease from the $0.60 per share reported in the same period last year. The company's quarterly revenue came in at $2.064 billion, missing the analyst estimate of $2.346 billion by 12.01% and marking a 2.78% decline from the previous year.

Despite beating earnings estimates, investors appear concerned about the company's continued challenges. Franklin Resources reported long-term net outflows of $9.3 billion, although this marks an improvement from the previous quarter. The company's adjusted operating income also declined year-over-year to $377.8 million, with the adjusted operating margin dropping to 23.7%. These figures, combined with the revenue miss, suggest ongoing pressures on the firm's business model in a challenging market environment, leading to the significant pre-market drop in share price.