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Franklin Resources (NYSE:BEN), known for its Franklin-Templeton funds, on Tuesday posted stronger-than-expected earnings for the last quarter of its fiscal year even though slumping markets hurt its top and bottom lines.
Adjusted EPS for the quarter ended Sept. 30, 2022 was $0.78 exceeded the average analyst estimate of $0.67. That fell from $0.82 in the prior quarter and from $1.26 in the year-ago quarter.
Q4 operating revenue of $1.94B, topping the $1.77B consensus, declined from $2.03B in Q3 and from $2.18B in Q4 2021.
Still, BEN stock dropped 4.6% as its operating income failed to reach the average analyst estimate. Q4 operating income declined to $348.5M, missing the Visible Alpha consensus of $351.1M, from $404.7M in prior quarter and $531.5M in the year-ago quarter.
“Since January, macroeconomic and geopolitical uncertainty have resulted in significant volatility and correlated declines in both global equity and fixed income markets,” said President and CEO Jenny Johnson. “Our assets under management and flows were impacted by these unprecedented conditions and industry-wide pressures.”
The company said it benefited from a diversified mix of assets and generated net inflows in the alternative and multi-asset categories, she added. In addition, it saw an improvement in its non-U.S. regions. EMEA had positive net inflows for the year.
Q4 long-term net outflows of $20.4B rose from $19.8B in Q3 and $9.9B in Q4 2021.
Investment management fees for the quarter dropped to $1.57B from $1.64B in Q3 and from $1.71B in Q4 2021.
Operating expenses of $1.59B dropped from $1.63B in the prior quarter and from $1.65B in the year-ago quarter.
Assets under management ended the quarter at $1.30T, slid from $1.38T at the end of Q3.
Conference call at 11:00 AM ET.
Earlier, Franklin Resources (BEN) non-GAAP EPS of $0.78 beats by $0.11, revenue of $1.94B beats by $170M
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