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Based in San Mateo, California, Franklin Resources, Inc. (BEN) is a global asset management holding company with a market cap of $12.2 billion. It serves a diverse client base across the retail and institutional sectors. The company is expected to announce its fiscal Q3 earnings results before the market opens on Friday, Jul. 26.
Ahead of this event, analysts expect BEN to report a profit of $0.59 per share, down 6.4% from $0.63 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. The company reported an EPS of $0.56, missing the consensus EPS estimate by 1.8% in the most recent quarter.
For fiscal 2024, analysts expect BEN to report EPS of $2.45, down 5.8% from $2.60 in fiscal 2023. Looking forward to fiscal 2025, EPS is expected to grow by 12.7% annually to $2.76.
BEN has underperformed the broader markets over the past 52 weeks, with shares down 17.3% versus the S&P 500 Index's ($SPX) nearly 25% gain and the S&P 500 S&P 500 Financials Sector SPDR's (XLF) 25.8% increase over the same period.
At the end of January, shares of Franklin Resources dipped following its Q1 earnings result despite reporting higher-than-expected profits due to investor concerns about the lower growth rates in fixed-income products, which typically generate lower fees than equity and alternative investments. Plus, the stock dropped 6.4% on Apr. 29 due to a fall in Q2 profit caused by a 21% increase in operating expenses from higher employee compensations amid a tight labor market, despite a rise in investment management fees.
Overall, analysts' consensus view on Franklin Resources stock is skeptical, with a "Moderate Sell" rating. Out of 12 analysts covering the stock, seven give a "Hold," two have a "Moderate Sell" rating, and three give a "Strong Sell" rating. This consensus has remained steady over the past three months.
The average analyst price target for BEN is $25.39, suggesting a potential upside of 9.3% from the current levels.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
