Wealth manager Franklin Resources' Q3 revenue beats estimates
Overview
Franklin Resources Q3 revenue beats analyst expectations, per LSEG data
Adjusted EPS for Q3 meets consensus estimates, per LSEG data
Adjusted operating income for Q3 beats analyst expectations, per LSEG data
Outlook
Company sees strong client demand across all asset classes
Result Drivers
ETF PLATFORM - Achieved 15th consecutive qtr of positive net flows, reaching $44.1 bln in AUM, up 5% from prior qtr
ALTERNATIVE ASSET FUNDRAISING - Generated $6.2 bln in fundraising, with $5.3 bln in private market assets, contributing to $19 bln fiscal year-to-date
INTERNATIONAL NET FLOWS - Positive net flows internationally, with ending AUM of approximately $500 bln, reflecting strong client demand
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $2064000000 | $1603000000 (3 Analysts) |
Q3 Adjusted EPS | Meet | $0.49 | $0.49 (8 Analysts) |
Q3 EPS | $0.15 | ||
Q3 Net Income | $92.30 mln | ||
Q3 Adjusted Operating Income | Beat | $377800000 | $372000000 (4 Analysts) |
Q3 Adjusted Operating Margin | 23.7% | ||
Q3 Operating Income | $154.10 mln | ||
Q3 Operating Margin | 7.5% |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 5 "hold" and 4 "sell" or "strong sell"
The average consensus recommendation for the investment management & fund operators peer group is "buy."
Wall Street's median 12-month price target for Franklin Resources Inc is $23.00, about 4.3% below its July 31 closing price of $24.00
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
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