Franklin Resources Inc. (BEN) on Monday reported a 10 percent decline in profit for the third quarter on lower investment management fees as well as sales and distribution fees. Nevertheless, earnings per share beat analysts' estimates, while revenues missed their expectations.
San Mateo, California-based Franklin Resources is an asset management holding company that offers investment vehicles for clients, including individuals, institutions, pension plans, trusts and partnerships.
The company's investment management fees for the quarter declined 5 percent from the year-ago period to $1.11 billion, while sales and distribution fees decreased 4 percent to $569.14 million.
Shareholder servicing fees were flat with last year at $77.22 million, and other revenues plunged 84 percent to $22.82 million.
Franklin Resources' net income for the third quarter was $455.27 million or $2.12 per share,down from $503.35 million or $2.26 per share in the year-ago period.
On average, 19 analysts polled by Thomson Reuters expected the company to report earnings of $2.05 per share for the quarter. Analysts' estimates typically exclude one-time items.
Operating revenues for quarter declined 4 percent to $1.78 billion from $1.85 billion in the year-ago period and missed analysts' consensus of $1.80 billion.
Operating margin for the quarter was 36 percent, down from 36.8 percent in the year-ago period.
Total operating expenses for the quarter declined 3 percent from the same period last year to $1.14 billion.
As at June 30, Franklin Resource's total assets under management or AUM were $707.1 billion, down 4 percent from the same period last year. The decrease was primarily due to market depreciation of $32 billion.
Net new flows for the quarter were $4.8 billion, down 78 percent from the prior-year period.
In Monday's regular session, BEN is trading at $113.98, up $1.77 or 1.58 percent on a volume of 8,849 shares.
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