logo
Plus   Neg
Share
Email

Franklin Resources Q1 Profit Beats Estimates

Franklin Resources, Inc. (BEN) on Friday reported a 7 percent increase in profit for the first quarter from last year, reflecting higher investment management fees as well as sales and distribution fees. Earnings per share beat analysts' estimates, while revenues matched their expectations. The company's assets under management increased 17 percent from last year.

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 first quarter grew 12 percent from the year-ago period to $1.20 billion, while sales and distribution fees increased 15 percent to $604.1 million.

Meanwhile, shareholder servicing fees edged down 1 percent from last year to $74.4 million, and other revenues declined 14 percent to $23.4 million.

Franklin Resources' net income for the first quarter rose to $516.1 million or $2.42 per share from $480.8 million or $2.20 per share in the same period last year. On average, 20 analysts polled by Thomson Reuters expected the company to earn $2.38 per share for the quarter. Analysts' estimates typically exclude special items.

Operating revenues for the quarter grew 12 percent to $1.90 billion from $1.70 billion in the year-ago period and matched analysts consensus estimate of $1.90 billion.

As at December 31, Franklin Resources' total assets under management or AUM were $781.8 billion, up 17 percent from $670.3 billion in the same period last year. The increase was primarily due to $94.0 billion in market appreciation and $13.6 billion of net new flows.

In Friday's regular session, BEN is trading at $137.97, up $1.09 or 0.80 percent on a volume of 147,395 shares.

by RTTNews Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Down the line, GE has transformed from a too-big-to-fail conglomerate to a too-big-for-success albatross. The company has admitted to being too-much focused on EPS and operating profit, and not paying enough attention to cash. However, GE is certainly learning lessons from its past and refocusing its strategies to stage a comeback to its Camelot days, the key catalysts being... Industrial conglomerate General Electric Co., one of the original components of the Dow Jones Industrial Average, has been replaced by Walgreens Boots Alliance Inc. in the blue-chip index. The change comes into effect prior to the open of trading on Tuesday, June 26. The 122-year-old Dow Jones Industrial Average, or simply the Dow, is a stock market index with 30 component companies. A $716 billion defense policy bill easily cleared the Senate on Monday, although the legislation must still be reconciled with the version previously approved by the House. The Senate voted 85 to 10 in favor of the National Defense Authorization Act, which authorizes U.S. military spending for fiscal 2019.
Follow RTT