Franklin Resources (NYSE:BEN) Releases Quarterly Earnings Results, Beats Estimates By $0.16 EPS

Key Points

• Franklin Resources reported Q‑quarter EPS of $0.71, beating the consensus by $0.16, with revenue of $1.75B (vs. $1.70B est.) and revenue up 8.7% year‑over‑year; net margin was 6.97% and ROE 9.58%.
• The company paid a quarterly dividend of $0.33 (annualized $1.32) for a yield of 4.6%, but its dividend payout ratio is elevated at 122.22%.
• Shares rose to $28.41 (near the 12‑month high) and trade at a P/E of 26.49 with a market cap of ~$14.8B, while analysts are mixed and the MarketBeat consensus rating is "Reduce" with a $25.89 target.

Franklin Resources (NYSE:BEN - Get Free Report) posted its quarterly earnings results on Tuesday. The closed-end fund reported $0.71 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.55 by $0.16, FiscalAI reports. The firm had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.70 billion. Franklin Resources had a return on equity of 9.58% and a net margin of 6.97%.Franklin Resources's quarterly revenue was up 8.7% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.47 EPS.

Franklin Resources Stock Performance

BEN stock traded up $0.84 on Tuesday, hitting $28.41. The company had a trading volume of 1,034,137 shares, compared to its average volume of 5,329,426. The company has a current ratio of 1.86, a quick ratio of 1.86 and a debt-to-equity ratio of 1.01. Franklin Resources has a 12-month low of $18.17 and a 12-month high of $28.93. The stock has a market cap of $14.79 billion, a price-to-earnings ratio of 26.49, a P/E/G ratio of 1.04 and a beta of 1.44. The stock's 50-day simple moving average is $25.52 and its 200 day simple moving average is $24.57.

Franklin Resources Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, April 10th. Investors of record on Tuesday, March 31st were issued a $0.33 dividend. The ex-dividend date was Tuesday, March 31st. This represents a $1.32 annualized dividend and a yield of 4.6%. Franklin Resources's dividend payout ratio (DPR) is currently 122.22%.

Wall Street Analyst Weigh In

A number of research firms have weighed in on BEN. Evercore set a $27.00 price objective on shares of Franklin Resources in a research note on Friday, April 10th. Morgan Stanley raised their price target on shares of Franklin Resources from $21.00 to $22.00 and gave the company an "underweight" rating in a research report on Tuesday, February 3rd. TD Cowen reaffirmed a "buy" rating on shares of Franklin Resources in a research report on Thursday, April 9th. Weiss Ratings upgraded Franklin Resources from a "hold (c)" rating to a "hold (c+)" rating in a research note on Wednesday, April 22nd. Finally, Wall Street Zen lowered Franklin Resources from a "buy" rating to a "hold" rating in a report on Saturday, March 21st. Three equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and four have issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Reduce" and a consensus price target of $25.89.

Hedge Funds Weigh In On Franklin Resources

Institutional investors and hedge funds have recently modified their holdings of the company. Holocene Advisors LP bought a new stake in Franklin Resources during the second quarter valued at approximately $51,384,000. Northern Trust Corp boosted its stake in shares of Franklin Resources by 49.8% during the 3rd quarter. Northern Trust Corp now owns 4,118,686 shares of the closed-end fund's stock worth $95,265,000 after acquiring an additional 1,370,132 shares during the last quarter. Squarepoint Ops LLC grew its position in shares of Franklin Resources by 381.7% during the 3rd quarter. Squarepoint Ops LLC now owns 1,433,816 shares of the closed-end fund's stock valued at $33,164,000 after acquiring an additional 1,136,174 shares during the period. Two Sigma Investments LP increased its stake in shares of Franklin Resources by 167.5% in the 3rd quarter. Two Sigma Investments LP now owns 1,494,817 shares of the closed-end fund's stock worth $34,575,000 after purchasing an additional 936,105 shares in the last quarter. Finally, Dimensional Fund Advisors LP increased its stake in shares of Franklin Resources by 8.1% in the 4th quarter. Dimensional Fund Advisors LP now owns 10,882,860 shares of the closed-end fund's stock worth $259,988,000 after purchasing an additional 816,952 shares in the last quarter. 47.56% of the stock is currently owned by hedge funds and other institutional investors.

About Franklin Resources

Franklin Resources, Inc, doing business as Franklin Templeton, is a global investment management organization that offers a wide range of asset management solutions to institutional and individual investors. The firm's core focus is on delivering active portfolio management across equities, fixed income, multi-asset strategies and alternative investments. Franklin Templeton's product lineup includes mutual funds, exchange-traded funds (ETFs), closed-end funds, separately managed accounts and sub-advisory services designed to meet varying risk-return objectives and income needs.

Founded in 1947 by Rupert H.

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