Global investment management firm Franklin Resources (NYSE: BEN) will be announcing earnings results this Tuesday morning. Here’s what you need to know.
Franklin Resources beat analysts’ revenue expectations last quarter, reporting revenues of $1.75 billion, up 3.8% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and a decent beat of analysts’ revenue 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, the market is expecting Franklin Resources’s revenue to grow 5.9% year on year, a reversal from the 3.3% decrease 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 multiple times over the last two years.
Looking at Franklin Resources’s peers in the custody bank segment, some have already reported their Q1 results, giving us a hint as to what we can expect. BNY delivered year-on-year revenue growth of 13.8%, beating analysts’ expectations by 4.3%, and Northern Trust reported revenues up 13.8%, topping estimates by 4%. BNY traded up 2.4% following the results while Northern Trust was also up 5.6%.
Read our full analysis of BNY’s results here and Northern Trust’s results here.
There has been positive sentiment among investors in the custody bank segment, with share prices up 11.9% on average over the last month. Franklin Resources is up 20.4% during the same time and is heading into earnings with an average analyst price target of $26.68 (compared to the current share price of $27.59).
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