Franklin Resources (BEN) Q3 Earnings Report Preview: What To Look For

Global investment management firm Franklin Resources (NYSE:BEN) will be announcing earnings results this Friday before market hours. Here’s what to expect.

Franklin Resources missed analysts’ revenue expectations by 18.8% last quarter, reporting revenues of $1.59 billion, down 3.7% year on year. It was a softer quarter for the company, with a significant miss of analysts’ revenue estimates and a significant miss of analysts’ EPS estimates.

Is Franklin Resources a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Franklin Resources’s revenue to be flat year on year at $1.73 billion, slowing from the 8.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.59 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Franklin Resources has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Franklin Resources’s peers in the custody bank segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Hamilton Lane delivered year-on-year revenue growth of 27.3%, beating analysts’ expectations by 12.8%, and Invesco reported a revenue decline of 21.7%, in line with consensus estimates. Hamilton Lane traded up 7.8% following the results while Invesco was also up 2.7%.

Read our full analysis of Hamilton Lane’s results here and Invesco’s results here.

Investors in the custody bank segment have had fairly steady hands going into earnings, with share prices down 1.3% on average over the last month. Franklin Resources is down 2.7% during the same time and is heading into earnings with an average analyst price target of $24.91 (compared to the current share price of $22.76).

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