NYSE$BEN

Franklin Resources Inc. · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

Franklin Resources reported mixed results for Q2 2022, with net income decreasing but progress made in diversifying client offerings.

Franklin Resources reported a decrease in net income and diluted earnings per share for the quarter ended March 31, 2022, compared to both the previous quarter and the same quarter last year. However, the company saw long-term net inflows into higher fee products in the multi-asset category and at alternative specialist investment managers.

  • Net income decreased to $349.6 million, or $0.68 per diluted share, compared to $381.8 million, or $0.74 per diluted share, for the quarter ended March 31, 2021.
  • Adjusted net income increased to $491.6 million, or $0.96 per diluted share, compared to $403.5 million, or $0.79 per diluted share, for the quarter ended March 31, 2021.
  • Total assets under management (AUM) were $1,477.5 billion at March 31, 2022, a decrease of 1% year-over-year.
  • The company experienced long-term net outflows, but saw inflows into multi-asset and alternative investment products.

Headline financials

Total Revenue

$2.08B

Previous: $2.08B+0.2%
EPS (adj)

$0.96

Previous: $0.79+21.5%
Total AUM

$1.48T

Previous: $1.5T-1.4%
Equity AUM

$515B

Previous: $512B+0.7%
Fixed Income AUM

$595B

Previous: $642B-7.4%
Multi-Asset AUM

$152B

Previous: $148B+2.5%
Cash Management AUM

$57.3B

Previous: $65.4B-12.4%
Capital Expenditures

-$42.5M

Previous: -$20.8M-104.3%
Free Cash Flow

$307M

Previous: $361M-14.9%
Net Income

$350M

Previous: $382M-8.4%
Operating Income

$463M

Previous: $456M+1.5%
Gross Profit

$846M

Previous: $802M+5.4%
Cash & Equivalents

$5.8B

Previous: $4.36B+32.9%
Total Assets

$25.8B

Previous: $21.9B+18.1%
Stock-Based Comp

$53.1M

Previous: $45.2M+17.5%

Revenue & EPS history

Franklin Resources · Revenue · Quarterly

$2.08B

Q2 2022+0.2%vs Q2 2021
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Franklin Resources · $2.08B total across 4 segments · Q2 2022

  • Investment Mgmt Fees
    $1.65B+3.2%
  • Sales & Distribution
    $370M-10.5%
  • Shareholder Servicing
    $52.2M-6.3%
  • Other Revenue
    $9.4M+6.8%

Forward guidance

The company did not provide specific forward guidance in the earnings report.

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 2022

Historical avgQ2 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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