Franklin Resources Inc. (BEN) on Tuesday reported a 14 percent increase in profit for the second quarter from last year, reflecting higher investment management fees as well as sales and distribution fees. Assets under management increased 14 percent from last year. Both revenue and earnings per share for the quarter beat analysts' estimates.
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 second quarter grew 13 percent from the year-ago period to $1.27 billion, while sales and distribution fees increased 10 percent to $642.7 million. Shareholder servicing fees were flat with last year at $76.6 million, while other revenues more than doubled to $26.8 million.
Franklin Resources' second-quarter net income was $572.8 million or $2.69 per share, up from $503.2 million or $2.32 per share in the prior-year quarter. On average, analysts polled by Thomson Reuters expected the company to report earnings of $2.50 per share for the quarter. Analysts' estimates typically exclude special items.
Total operating revenues for the quarter grew 12 percent to $2.01 billion from $1.80 billion in the year-ago quarter. Analysts had a consensus revenue estimate of $1.99 billion.
At quarter-end, the company's total assets under management or AUM were $823.7 billion, up 14 percent from the same period last year, primarily due to $67.6 billion in market appreciation and $26.3 billion of net new flows.
In Tuesday's regular session, BEN is trading at $155.06, up $0.18 or 0.12 percent on a volume of 151,564 shares.
For comments and feedback: editorial@rttnews.com