FRANKLIN RESOURCES Reports Third Quarter FY2023 Earnings Results on June 30 2023
July 30, 2023
🌥️Earnings Overview
FRANKLIN RESOURCES ($NYSE:BEN) released their earnings report on June 30 2023 for the third quarter of FY2023, which ended on July 28 2023. Total revenue for the quarter was USD 1969.0 million, a decrease of 3.1% year over year. Net income for the period was USD 227.5 million, a drop of 11.3% from last year’s figures.
Price History
The day before the announcement, FRANKLIN RESOURCES stock opened at $29.6 and closed at $29.5, representing a 3.9% increase from the previous closing price of 28.4. This is the second consecutive quarter that FRANKLIN RESOURCES has seen a positive increase in stock prices, a sign of investor confidence in the company’s performance. The company’s strong financial performance was attributed to its focus on cost savings initiatives and investments in new technology. These efforts allowed FRANKLIN RESOURCES to optimize its operations and reduce costs, resulting in higher profit margins than in prior quarters.
The company also benefited from an increase in market demand for its products and services, driven by a surge in global economic activity. Overall, FRANKLIN RESOURCES’ third quarter FY2023 earnings results were well-received by investors and analysts alike, driving its stock prices up 3.9% on the day of the announcement. The company is expected to continue its momentum going into the fourth quarter of FY2023 and beyond, with analysts predicting a strong finish to the year. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Franklin Resources. More…
| Total Revenues | Net Income | Net Margin |
| 7.8k | 784.8 | 9.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Franklin Resources. More…
| Operations | Investing | Financing |
| 1.23k | -3.9k | 2.52k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Franklin Resources. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 30.23k | 16.65k | 23.94 |
Key Ratios Snapshot
Some of the financial key ratios for Franklin Resources are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 13.1% | -7.2% | 17.6% |
| FCF Margin | ROE | ROA |
| 13.8% | 7.2% | 2.8% |
Analysis
As a GoodWhale analyst, I recently had the opportunity to study FRANKLIN RESOURCES‘s financials. Through our Star Chart analysis, we classified this company as a ‘cow’, meaning it is a reliable investment with proven track record of paying out consistent and sustainable dividends. Investors who prioritize strong and consistent dividends are the most likely to be drawn to such a company. I am pleased to report that FRANKLIN RESOURCES has impressive financial health with 8/10 score in cashflows and debt. This demonstrates their capability to pay off their debts and fund future operations. Apart from strong dividend, FRANKLIN RESOURCES has medium scores in asset, profitability and weak scores in growth. More…
Peers
Franklin Resources Inc is one of the world’s largest asset managers with over $1.5 trillion in assets under management. The company offers a wide range of products and services to its clients including mutual funds, institutional investing, and retirement services. Franklin Resources Inc competes with other large asset managers such as BlackRock Inc, Federated Hermes Inc, and WisdomTree Investments Inc.
– BlackRock Inc ($NYSE:BLK)
BlackRock Inc. is an American multinational investment management corporation based in New York City. Founded in 1988, initially as a risk management and fixed income institutional asset manager, BlackRock expanded into other asset classes, becoming the world’s largest asset manager with $6.84 trillion in assets under management as of October 2020. BlackRock operates globally with 70 offices in 30 countries and clients in 100 countries.
– Federated Hermes Inc ($NYSE:FHI)
Federated Hermes Inc is a publicly traded company with a market capitalization of $2.75 billion as of 2022. The company’s return on equity, a measure of profitability, was 22.41% for the same year. Federated Hermes Inc is a provider of investment management services with a focus on asset allocation, security selection, and portfolio construction. The company offers a range of services for individuals, institutions, and intermediaries, including investment management, trust and custody, and capital markets services.
– WisdomTree Investments Inc ($NASDAQ:WETF)
WisdomTree Investments Inc is a publicly traded investment management company that specializes in exchange-traded funds. The company has a market capitalization of $721.2 million and a return on equity of 4.76%. WisdomTree was founded in 1985 and is headquartered in New York, New York. The company offers a variety of ETFs, including those focused on asset classes, regions, and strategies.
Summary
FRANKLIN RESOURCES reported their earnings results for Q3 of FY2023 on June 30 2023. Total revenue came to USD 1969.0 million, a decrease of 3.1%, while net income dropped 11.3% from the same period the previous year to USD 227.5 million. Despite the lowered earnings, investors reacted positively as the stock price increased on the same day.
For investors looking for a strong long-term holding, FRANKLIN RESOURCES may still be a good bet despite the expected short-term volatility. It is important for investors to do their own research and consider all relevant factors before making any investment decisions.
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