Franklin Resources (BEN) Q1 Earnings Beat Estimate, AUM Up

Have you been eager to see how Franklin Resources Inc. BEN performed in fiscal Q1 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 Beat

Franklin Resources came out with adjusted earnings per share of 88 cents, beating the Zacks Consensus Estimate of 75 cents. Higher revenues and strong assets under management were primarily responsible for the beat. Results exclude income tax charge related to the tax reform.

How Was the Estimate Revision Trend?

You should note that the earnings estimate revisions for Franklin Resources depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate remained stable over the last seven days.

Further, Franklin Resources has a decent earnings surprise history. Before posting earnings beat in fiscal Q1, the company delivered positive surprises in three of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 7.31% in the trailing four quarters.

Revenue Came In As Expected

Franklin Resources posted revenues of $1.62 billion, in line with the Zacks Consensus Estimate. However, it compared favorably with the year-ago number of $1.56 billion.

Key Stats to Note:

• Operating expenses were up 6% year over year
• Revenues were up 4% year over year
• Assets Under Management were up 5% year over year
• Results reflect income tax charge of $1.1 billion or $1.94 per share associated with the tax reform

What Zacks Rank Says

The estimate revisions that we discussed earlier have driven a Zacks Rank #2 (Buy) 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 favorable, it all depends on what sense the just-released report makes to the analysts.

(You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.)

Check back later for our full write up on this Franklin Resources earnings report!

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