NYSE$BEN

Franklin Resources Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Franklin Resources reported second quarter results, experiencing organic growth and strong performance across investment strategies.

Franklin Resources, Inc. announced net income of $381.8 million, or $0.74 per diluted share, for the quarter ended March 31, 2021. The company saw an increase in gross sales of 32% from the prior quarter and positive net flows into several investment areas. Total assets under management were $1,498.9 billion at the end of the quarter.

  • Net income was $381.8 million, or $0.74 per diluted share.
  • Adjusted net income was $403.5 million, and adjusted diluted earnings per share was $0.79.
  • Total assets under management (AUM) were $1,498.9 billion.
  • Alternative asset inflows nearly doubled from the prior quarter, with record net inflows of $2.9 billion.

Headline financials

Total Revenue

$2.08B

Previous: $1.34B+55.2%
EPS (adj)

$0.79

Previous: $0.66+19.7%
Total AUM

$1.5T

Previous: $580B+158.3%
Equity AUM

$512B

No prior period
Fixed Income AUM

$642B

No prior period
Multi-Asset AUM

$148B

No prior period
Cash Management AUM

$65.4B

No prior period
Capital Expenditures

-$20.8M

Previous: -$73.5M+71.7%
Free Cash Flow

$361M

Previous: $5.6M+6346.4%
Net Income

$382M

Previous: $79.1M+382.7%
Operating Income

$456M

Previous: $356M+28.1%
Gross Profit

$802M

Previous: $1.34B-40.0%
Cash & Equivalents

$4.36B

Previous: $6.04B-27.7%
Total Assets

$21.9B

Previous: $14.7B+49.1%
Stock-Based Comp

$45.2M

Previous: $29.8M+51.7%

Revenue & EPS history

Franklin Resources · Revenue · Quarterly

$2.08B

Q2 2021+55.2%vs Q2 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Franklin Resources · $2.08B total across 4 segments · Q2 2021

  • Investment Mgmt Fees
    $1.6B+76.0%
  • Sales & Distribution
    $414M+21.0%
  • Shareholder Servicing
    $55.7M+1.6%
  • Other Revenue
    $8.8M-73.8%

Forward guidance

The company did not provide a quantitative forward guidance. However, they expressed optimism about their potential and focus on helping clients.

Tailwinds

  • Experiencing organic growth in key areas.
  • Strong performance and momentum across a broad base of investment strategies.
  • Expanded distribution effort drove an increase in gross sales of 32% from the prior quarter.
  • Positive net flows into Benefit Street Partners, Clarion Partners, ClearBridge, Fiduciary Trust International, Franklin Equity Group, Franklin Templeton Fixed Income, Martin Currie, Royce and Western Asset.
  • Balance sheet continues to provide strong financial flexibility.

Headwinds

  • Long-term net flows were negative at $(4.2) billion.
  • Subject to adverse effects from the outbreak and spread of contagious diseases such as COVID-19
  • Volatility and disruption of our business and the capital and credit markets and adverse changes in the global economy may significantly affect our results of operations and may put pressure on our financial results.
  • The amount and mix of our AUM are subject to significant fluctuations.
  • Subject to significant risk of asset volatility from changes in the global financial, equity, debt and commodity markets.

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 Q2 2021

Historical avgQ2 2021

-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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro