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 Miss
Franklin Resources came out with earnings per share of 91 cents, missing the Zacks Consensus Estimate of 93 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 Q1, the company delivered positive surprises in two of the prior four quarters. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.2% in the trailing four quarters.
Revenue Came In Lower Than Expected
Franklin Resources posted revenues of $2.06 billion, which significantly missed the Zacks Consensus Estimate of $2.12 billion. Moreover, it compared unfavorably with the year-ago number of $2.10 billion.
Key Stats to Note:
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Operating expenses were down 2% year over year
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Revenues were down 2% year over year
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Assets Under Management were almost in line with the prior-year period
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) 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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