Wealth manager Franklin Resources' Q3 revenue beats estimates

Franklin Templeton

01/08/2025 13:40

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

Press Release: ID:nBw25Lmz1a

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)