A Glimpse of Franklin Resources's Earnings Potential
Franklin Resources (NYSE:BEN) is preparing to release its quarterly earnings on Friday, 2025-05-02. Here's a brief overview of what investors should keep in mind before the announcement.
Analysts expect Franklin Resources to report an earnings per share (EPS) of $0.59.
Investors in Franklin Resources are eagerly awaiting the company's announcement, hoping for news of surpassing estimates and positive guidance for the next quarter.
It's worth noting for new investors that stock prices can be heavily influenced by future projections rather than just past performance.
Past Earnings Performance
The company's EPS beat by $0.06 in the last quarter, leading to a 0.0% drop in the share price on the following day.
Here's a look at Franklin Resources's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 0.53 | 0.60 | 0.57 | 0.57 |
| EPS Actual | 0.59 | 0.59 | 0.60 | 0.56 |
| Price Change % | 10.0% | 4.0% | -2.0% | -2.0% |
Tracking Franklin Resources's Stock Performance
Shares of Franklin Resources were trading at $18.76 as of April 30. Over the last 52-week period, shares are down 19.14%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analysts' Perspectives on Franklin Resources
For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on Franklin Resources.
A total of 12 analyst ratings have been received for Franklin Resources, with the consensus rating being Neutral. The average one-year price target stands at $19.62, suggesting a potential 4.58% upside.
Peer Ratings Overview
In this comparison, we explore the analyst ratings and average 1-year price targets of SEI Investments, Blue Owl Capital and Hamilton Lane, three prominent industry players, offering insights into their relative performance expectations and market positioning.
- Analysts currently favor an Neutral trajectory for SEI Investments, with an average 1-year price target of $79.5, suggesting a potential 323.77% upside.
- Analysts currently favor an Outperform trajectory for Blue Owl Capital, with an average 1-year price target of $24.9, suggesting a potential 32.73% upside.
- Analysts currently favor an Neutral trajectory for Hamilton Lane, with an average 1-year price target of $160.0, suggesting a potential 752.88% upside.
Key Findings: Peer Analysis Summary
The peer analysis summary offers a detailed examination of key metrics for SEI Investments, Blue Owl Capital and Hamilton Lane, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Franklin Resources | Neutral | 13.08% | $1.83B | 1.19% |
| SEI Investments | Neutral | 7.77% | $303.95M | 6.72% |
| Blue Owl Capital | Outperform | 27.80% | $336.88M | 1.00% |
| Hamilton Lane | Neutral | 34.33% | $128.63M | 8.44% |
Key Takeaway:
Franklin Resources ranks in the middle for consensus rating among its peers. It is at the bottom for revenue growth. In terms of gross profit, it is at the top among its peers. However, for return on equity, it is at the bottom compared to its peers.
All You Need to Know About Franklin Resources
Franklin Resources provides investment services for individual and institutional investors. At the end of February 2025, Franklin had $1.577 trillion in managed assets, composed primarily of equity (39%), fixed-income (30%), multi-asset/balanced (11%) funds, alternatives (16%) and money market funds (4%). Distribution tends to be weighted not quite equally between retail investors (54% of AUM) and institutional accounts (43%), with high-net-worth clients accounting for the remainder. Franklin is one of the more global of the US-based asset managers we cover, with 30% of its assets under management invested in global/international strategies and just as much sourced from clients domiciled outside the United States.
Key Indicators: Franklin Resources's Financial Health
Market Capitalization Perspectives: The company's market capitalization falls below industry averages, signaling a relatively smaller size compared to peers. This positioning may be influenced by factors such as perceived growth potential or operational scale.
Positive Revenue Trend: Examining Franklin Resources's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 13.08% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Financials sector, the company excelled with a growth rate higher than the average among peers.
Net Margin: Franklin Resources's net margin is below industry averages, indicating potential challenges in maintaining strong profitability. With a net margin of 6.58%, the company may face hurdles in effective cost management.
Return on Equity (ROE): The company's ROE is below industry benchmarks, signaling potential difficulties in efficiently using equity capital. With an ROE of 1.19%, the company may need to address challenges in generating satisfactory returns for shareholders.
Return on Assets (ROA): Franklin Resources's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.46%, the company may face hurdles in achieving optimal financial performance.
Debt Management: Franklin Resources's debt-to-equity ratio is below the industry average at 1.03, reflecting a lower dependency on debt financing and a more conservative financial approach.
To track all earnings releases for Franklin Resources visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.