NYSE$BEN

Franklin Resources Inc. · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Franklin Resources' Q4 2020 results reflected the acquisition of Legg Mason and positive net flows in U.S. fixed income, while net income decreased compared to the previous quarter and prior year.

Franklin Resources reported preliminary net income of $78.9 million, or $0.15 per diluted share, for the quarter ended September 30, 2020. The quarter's results include two months of Legg Mason. Total assets under management (AUM) were $1,418.9 billion, up 128% during the quarter.

  • Acquisition of Legg Mason was completed, bringing strategically important investment capabilities.
  • Global distribution team is in place and cross-selling investment products.
  • U.S. fixed income attracted record net flows of $5.7 billion in the quarter.
  • Alternatives asset class recorded its fifth consecutive quarter of net inflows, representing 9% of AUM at $124 billion.

Headline financials

Total Revenue

$1.71B

Previous: $1.45B+17.3%
EPS (adj)

$0.56

Previous: $0.61-8.2%
Total AUM

$1.42T

No prior period
Capital Expenditures

$18.4M

Previous: $31.1M-40.8%
Free Cash Flow

$356M

Previous: $1.2M+29600.0%
Net Income

$78.9M

Previous: $306M-74.2%
Operating Income

$104M

Previous: $392M-73.5%
Gross Profit

$506M

Previous: $607M-16.6%
Cash & Equivalents

$4.3B

Previous: $6.21B-30.7%
Total Assets

$1.42T

Previous: $14.5B+9663.8%
Stock-Based Comp

$35.4M

Previous: $23.4M+51.3%

Revenue & EPS history

Franklin Resources · Revenue · Quarterly

$1.71B

Q4 2020+17.3%vs Q4 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Franklin Resources · $1.71B total across 4 segments · Q4 2020

  • Investment Mgmt Fees
    $1.28B
  • Sales & Distribution
    $367M
  • Shareholder Servicing
    $45.7M
  • Other Revenue
    $8M

Forward guidance

The press release does not contain specific forward guidance. It focuses on the integration of Legg Mason and the firm's strategic positioning.

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 Q4 2020

Historical avgQ4 2020

-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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