NYSE$BEN

Franklin Resources Inc. · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Franklin Resources announced first quarter results, showing increased operating revenues and operating income compared to the prior year. Net income and diluted earnings per share also increased year-over-year, although decreased compared to the previous quarter. The company highlighted its progress in diversifying its business and strategic investments in key growth areas.

Franklin Resources reported a mixed first quarter. While operating income and revenues increased year over year, net income decreased compared to the previous quarter. The company's AUM grew, driven by long-term net inflows and acquisitions. Strategic investments in alternatives, SMAs, wealth management, and ESG remained a focus.

  • Net income was $453.2 million, or $0.88 per diluted share.
  • Operating income was $557.7 million.
  • Total assets under management (AUM) were $1,578.1 billion.
  • Long-term net flows were $24.1 billion.

Headline financials

Total Revenue

$2.22B

Previous: $2B+11.5%
EPS (adj)

$1.08

Previous: $0.73+47.9%
Total AUM

$1.58T

Previous: $1.5T+5.3%
Equity AUM

$563B

Previous: $496B+13.7%
Fixed Income AUM

$642B

Previous: $670B-4.1%
Multi-Asset AUM

$154B

Previous: $141B+9.1%
Cash Management AUM

$64.3B

Previous: $64.2B+0.2%
Capital Expenditures

-$16.7M

Previous: -$13.6M-22.8%
Free Cash Flow

$437M

Previous: $332M+31.6%
Net Income

$453M

Previous: $345M+31.2%
Operating Income

$558M

Previous: $409M+36.3%
Gross Profit

$911M

Previous: $763M+19.4%
Cash & Equivalents

$4.54B

Previous: $4.42B+2.8%
Total Assets

$25B

Previous: $21.2B+17.7%
Stock-Based Comp

$59.4M

Previous: $41M+44.9%

Revenue & EPS history

Franklin Resources · Revenue · Quarterly

$2.22B

Q1 2022+11.5%vs Q1 2021
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Franklin Resources · $2.22B total across 4 segments · Q1 2022

  • Investment Mgmt Fees
    $1.76B+14.3%
  • Sales & Distribution
    $398M+0.3%
  • Shareholder Servicing
    $47.7M-3.4%
  • Other Revenue
    $17.6M+109.5%

Forward guidance

The document includes some forward-looking statements that reflect current views with respect to future events, financial performance and market conditions.

Tailwinds

  • Statements are provided under the “safe harbor” protection of the Private Securities Litigation Reform Act of 1995.
  • Includes all statements that do not relate solely to historical or current facts
  • Statements are based on our current expectations and assumptions regarding our business, the economy and other possible future conditions.
  • Reflect our current views with respect to future events, financial performance and market conditions.
  • Encourages investors to consult those sections regularly

Headwinds

  • Forward-looking statements involve a number of known and unknown risks, uncertainties and other important factors that may cause actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements
  • Pandemic-related risks
  • Market and volatility risks
  • Investment performance and reputational risks
  • Global operational risks

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

-0.0%

Avg return

Earnings day

+0.3%

Avg return

5 days after

+0.3%

Avg return

30 days after

46%

33 / 72 earnings

Positive

+19.7%

Q4 2021

Best reaction

-18.4%

Q4 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.1%+8.2%+12.0%
Q1 2026+0.7%+7.5%+2.6%
Q4 2025-4.5%-0.9%+0.6%
Q2 2025+6.8%+9.2%+15.5%
Q1 2025+10.4%+2.5%+0.5%
Q4 2024+0.5%+1.0%+8.8%
Q3 2024-4.5%-3.3%-11.4%
Q2 2024-8.6%-6.4%-9.0%
Q1 2024-1.7%-2.5%-2.1%
Q4 2023+0.2%+7.7%+10.2%
Q3 2023+2.9%-0.2%-9.2%
Q2 2023-6.2%-5.0%-10.7%
Q1 2023+1.6%+8.3%-5.3%
Q4 2022-3.8%-0.5%+16.3%
Q3 2022+7.9%+7.7%+4.2%
Q2 2022+5.8%-1.3%+6.0%
Q1 2022+0.6%-2.7%-8.6%
Q4 2021+19.7%+13.9%+1.0%
Q3 2021+2.8%+6.3%+9.0%
Q2 2021+11.3%+12.7%+17.4%
Q1 2021-2.7%-2.7%-3.6%
Q4 2020-18.4%-17.9%-2.3%
Q3 2020+0.5%+0.1%+1.6%
Q2 2020-2.5%-2.9%+2.1%
Q1 2020+1.9%+3.0%-12.4%
Q4 2019+1.0%-0.2%-2.9%
Q3 2019-5.7%-9.1%-23.8%
Q2 2019-3.6%-4.0%-6.1%
Q1 2019-5.1%-3.5%+4.7%
Q4 2018+3.5%+9.4%+15.0%
Q3 2018+4.8%-0.9%-0.2%
Q2 2018+2.1%-1.6%+1.3%
Q1 2018-6.0%-9.4%-15.0%
Q4 2017-2.9%-4.6%-6.7%
Q3 2017-2.4%-4.3%-7.0%
Q2 2017+1.1%+1.1%-1.4%
Q1 2017-1.5%-1.9%+4.8%
Q4 2016-1.1%-3.3%+12.9%
Q3 2016+3.8%+0.6%+3.8%
Q2 2016-5.1%
Q1 2016+4.8%
Q4 2015+5.9%
Q3 2015-0.8%
Q2 2015-1.1%
Q1 2015-0.6%
Q4 2014+1.8%
Q3 2014-5.2%
Q2 2014-2.3%
Q1 2014-1.2%
Q4 2013+0.4%
Q3 2013+0.1%
Q2 2013+1.8%
Q1 2013+1.4%
Q4 2012-0.3%
Q3 2012+2.5%
Q2 2012-5.2%
Q1 2012+6.7%
Q4 2011-2.2%
Q3 2011-1.2%
Q2 2011-0.9%
Q1 2011+2.4%
Q4 2010-2.5%
Q3 2010-3.0%
Q2 2010-7.0%
Q1 2009-0.8%
Q1 2010+2.5%
Q4 2009-0.6%
Q2 2009-0.6%
Q4 2007-0.6%
Q3 2009-0.1%
Q3 2008-0.1%
Q4 2008-0.1%

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