Compared to Estimates, Franklin Resources (BEN) Q2 Earnings: A Look at Key Metrics

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Franklin Resources (BEN) reported $1.93 billion in revenue for the quarter ended March 2023, representing a year-over-year decline of 7.4%. EPS of $0.61 for the same period compares to $0.96 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $1.83 billion, representing a surprise of +5.22%. The company delivered an EPS surprise of +7.02%, with the consensus EPS estimate being $0.57.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Franklin Resources performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Operating Revenues- Shareholder servicing fees: $43.30 million compared to the $40.89 million average estimate based on four analysts. The reported number represents a change of -17.1% year over year.

  • Operating Revenues- Other: $9.20 million versus the four-analyst average estimate of $10.87 million. The reported number represents a year-over-year change of -2.1%.

  • Operating Revenues- Sales and distribution fees: $301.40 million compared to the $302.20 million average estimate based on three analysts. The reported number represents a change of -18.6% year over year.

  • Operating Revenues- Investment management fees: $1.57 billion compared to the $1.42 billion average estimate based on three analysts. The reported number represents a change of -4.6% year over year.

View all Key Company Metrics for Franklin Resources here>>>

Shares of Franklin Resources have returned -0.2% over the past month versus the Zacks S&P 500 composite's +5.1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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