Franklin Resources Set to Reveal Fiscal Q1 Earnings Amid Challenges
Franklin Resources, Inc. (BEN), based in San Mateo, California, operates as a global investment management firm serving clients across more than 150 countries. With a market capitalization of $10.3 billion, the company provides diverse services, including equity, fixed income, alternative investments, and multi-asset strategies, while managing over $1.6 trillion in assets. This leading investment manager is set to announce its earnings for the fiscal first quarter of 2025 on Monday, February 3.
Expected Earnings and Historical Performance
Analysts anticipate that BEN will disclose a profit of $0.56 per share on a diluted basis, reflecting a 13.9% decline from $0.65 per share in the corresponding quarter last year. The firm has had mixed results lately, exceeding consensus estimates in two of the last four quarters and falling short in the other two.
Full-Year Projections
Looking ahead, forecasts suggest that BEN will report an EPS of $2.43 for the full year, marking a 1.7% increase from $2.39 in fiscal 2024. In fiscal 2026, earnings per share are expected to rise by 7.8% year over year to $2.62.
Stock Performance and Market Challenges
Over the past year, BEN stock has lagged significantly behind the S&P 500’s 25.8% gains, dropping 31.7% during that time. Similarly, it fell short of the Financial Select Sector SPDR Fund’s (XLF) 28% gains in the same period.
This underperformance may be linked to an ongoing investigation by the SEC and DOJ into its subsidiary, Western Asset Management. Allegations include that the firm engaged in cherry-picking profitable trades for favored clients, which has adversely impacted its reputation. Rising operating costs, changing market demands, and increased competition in the investment management sector have further strained its performance.
Recent Earnings Report and Analyst Ratings
On November 4, BEN shares fell by over 3% following its Q4 results. The company reported an adjusted EPS of $0.59, slightly missing Wall Street’s expectation of $0.60. However, the revenue stood at $2.2 billion, surpassing forecasts of $2.1 billion.
The analyst consensus on BEN stock is moderately bearish, represented by a “Moderate Sell” rating overall. Among 14 analysts covering the stock, eight recommend a “Hold,” two suggest a “Moderate Sell,” and four advise a “Strong Sell.” Currently, BEN’s average price target is set at $20.39, hinting at a possible upside of 3.3% from its current trading price.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.
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