Global investment management firm Franklin Resources (NYSE:BEN) will be reporting results this Friday before market open. Here’s what to look for.
Franklin Resources beat analysts’ revenue expectations by 35.4% last quarter, reporting revenues of $2.34 billion, up 36.5% year on year. It was a mixed quarter for the company, with an impressive beat of analysts’ revenue estimates but 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 grow 24.1% year on year to $2.09 billion, improving from the 10% increase it recorded in the same quarter last year.
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 Q4 results, giving us a hint as to what we can expect. Northern Trust delivered year-on-year revenue growth of 9.4%, beating analysts’ expectations by 4.5%, and Invesco reported revenues up 8.8%, topping estimates by 0.9%. Northern Trust traded up 2.9% following the results while Invesco was down 3.7%.
Read our full analysis of Northern Trust’s results here and Invesco’s results here.
Investors in the custody bank segment have had steady hands going into earnings, with share prices flat over the last month. Franklin Resources is up 8.2% during the same time.
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