Have you been eager to see how Franklin Resources Inc. BEN performed in fiscal Q4 in comparison with the market expectations? Let’s quickly scan through the key facts from this CA-based popular asset management firm’s earnings release this morning:
An Earnings Miss
Franklin Resources came out with earnings per share of 59 cents, missing the Zacks Consensus Estimate of 78 cents. Weak top line and net outflows were the headwinds for the quarter.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Franklin Resources depicted a neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.
Also, Franklin Resources has a decent earnings surprise history. Before posting an earnings miss in fiscal Q4, the company delivered positive surprises in two of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.57% in the trailing four quarters.
Revenue Came In Lower Than Expected
Franklin Resources posted revenues of $1.87 billion, which missed the Zacks Consensus Estimate of $1.90 billion. Moreover, it compared unfavorably with the year-ago number of $2.16 billion.
Key Stats to Note:
- Operating expenses were down 12% year over year
- Revenues were down 13% year over year
- Assets Under Management were down 14% year over year
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #5 (Strong Sell) for Franklin Resources. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look unfavorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this Franklin Resources earnings report!
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