Franklin Resources beats Q1 profit estimates

Overview

• Investment manager's fiscal Q1 operating revenue beat analyst expectations

• Adjusted EPS for fiscal Q1 beat analyst expectations

• Company repurchased 1.8 mln shares for $41.9 mln

Outlook

• Company highlights strategic investments in alternative assets for future growth

• Franklin Resources emphasizes disciplined expense management and strategic investments

• Company sees diversified business model as well positioned for long-term industry trends

Result Drivers

• POSITIVE NET FLOWS - Co reported $28 bln in long-term net inflows, driven by equity, multi-asset, alternatives strategies, and ETFs

• ALTERNATIVES FUNDRAISING - Alternatives fundraising contributed $10.8 bln, including $9.5 bln in private market assets

• ACQUISITIONS - Acquisition of Apera Asset Management added $6.1 bln to AUM, enhancing direct lending capabilities

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "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 $25.50, about 1.5% below its January 29 closing price of $25.88

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nBw40nnpGa

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