Franklin Financial Services (NASDAQ:FRAF) Posts Quarterly Earnings Results, Beats Expectations By $0.14 EPS

Key Points

• Quarterly results beat expectations: Franklin Financial Services reported EPS of $1.48, $0.14 above consensus, with revenue of $23.88 million and strong profitability metrics (ROE 13.06%, net margin 15.90%).
• The company raised its quarterly dividend to $0.34 (annualized $1.36), a 2.4% yield with a payout ratio of about 28.7%, payable May 27 (ex-dividend May 1).
• Analyst sentiment is positive—recent upgrades including a "buy"/"outperform" stance and an average $59 price target—while the stock trades near $56.26 with a market cap of roughly $252.7 million and a P/E around 11.9.

Franklin Financial Services (NASDAQ:FRAF - Get Free Report) issued its earnings results on Thursday. The company reported $1.48 EPS for the quarter, beating the consensus estimate of $1.34 by $0.14, FiscalAI reports. Franklin Financial Services had a return on equity of 13.06% and a net margin of 15.90%.The company had revenue of $23.88 million during the quarter, compared to the consensus estimate of $23.30 million.

Franklin Financial Services Stock Performance

Shares of Franklin Financial Services stock traded down $0.11 during mid-day trading on Thursday, hitting $56.26. 18,455 shares of the stock were exchanged, compared to its average volume of 45,073. Franklin Financial Services has a 12 month low of $33.44 and a 12 month high of $60.00. The company has a 50-day simple moving average of $51.98 and a 200 day simple moving average of $50.53. The company has a debt-to-equity ratio of 1.14, a quick ratio of 0.91 and a current ratio of 0.92. The company has a market capitalization of $252.72 million, a P/E ratio of 11.87 and a beta of -0.10.

Franklin Financial Services Increases Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, May 27th. Shareholders of record on Friday, May 1st will be given a dividend of $0.34 per share. The ex-dividend date of this dividend is Friday, May 1st. This represents a $1.36 annualized dividend and a dividend yield of 2.4%. This is an increase from Franklin Financial Services's previous quarterly dividend of $0.33. Franklin Financial Services's payout ratio is 28.69%.

Analyst Upgrades and Downgrades

Several equities analysts recently weighed in on FRAF shares. Wall Street Zen raised shares of Franklin Financial Services from a "hold" rating to a "buy" rating in a research report on Saturday, March 14th. Hovde Group started coverage on shares of Franklin Financial Services in a research report on Wednesday, March 11th. They issued an "outperform" rating and a $59.00 price target on the stock. Finally, Weiss Ratings reaffirmed a "buy (b)" rating on shares of Franklin Financial Services in a research report on Wednesday, January 28th. Two equities research analysts have rated the stock with a Buy rating, According to MarketBeat, the stock presently has an average rating of "Buy" and an average target price of $59.00.

Hedge Funds Weigh In On Franklin Financial Services

Several hedge funds have recently modified their holdings of FRAF. Russell Investments Group Ltd. lifted its position in shares of Franklin Financial Services by 69.2% during the 4th quarter. Russell Investments Group Ltd. now owns 863 shares of the company's stock worth $43,000 after buying an additional 353 shares in the last quarter. BNP Paribas Financial Markets lifted its position in shares of Franklin Financial Services by 84.1% during the 3rd quarter. BNP Paribas Financial Markets now owns 950 shares of the company's stock worth $44,000 after buying an additional 434 shares in the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. bought a new position in shares of Franklin Financial Services during the 2nd quarter worth approximately $79,000. New York State Common Retirement Fund bought a new position in shares of Franklin Financial Services during the 2nd quarter worth approximately $100,000. Finally, Cubist Systematic Strategies LLC bought a new position in shares of Franklin Financial Services during the 1st quarter worth approximately $133,000. Institutional investors own 24.80% of the company's stock.

About Franklin Financial Services

Franklin Financial Services, Inc NASDAQ: FRAF is a U.S.‐listed specialty finance company that makes and acquires secured loans, with a focus on asset-based lending and mortgage warehouse financing. Through its wholly owned subsidiary, FFS Investment Company, a Maryland corporation regulated as a business development company under the Investment Company Act of 1940, Franklin Financial provides revolving lines of credit, term loans and other credit facilities secured primarily by residential and commercial mortgage loans, receivables and inventory.

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