San Mateo, California-based investment manager, Franklin Resources Inc. (BEN), reported strong third-quarter earnings, exceeding analysts' expectations.
The company announced a net income of £139 million for the quarter, translating to 25 pence per share. After adjusting for one-off gains and costs, earnings reached 48 pence per share, significantly surpassing the average forecast of 46 pence per share by seven analysts surveyed by Zacks Investment Research.
Revenue for the period also outperformed market predictions, reaching £1.7 billion. This exceeded the £1.7 billion anticipated by three analysts surveyed by Zacks.
Despite these positive results, Franklin Resources shares have underperformed the market this year. The company's share price has fallen by 21% since the start of the year, while the S&P 500 index has climbed by 13%. Over the past twelve months, the share price has decreased by 19%.
The company's strong earnings performance in the third quarter comes amidst challenging market conditions. Investors have been navigating a volatile landscape marked by rising inflation, interest rate hikes, and geopolitical uncertainty.
While Franklin Resources has managed to exceed earnings expectations, the ongoing market headwinds and the company's share price performance suggest that investors remain cautious about the future outlook.
About Franklin Resources Inc.
Franklin Resources Inc. is a global investment management organisation with a long history of providing investment solutions to individuals, institutions, and corporations. The company manages a diverse range of investment strategies across various asset classes, including equities, fixed income, and alternatives.
Note: The figures in the article have been converted to UK pounds sterling from US dollars for better clarity for a UK audience.