NYSE$BEN

Franklin Resources Inc. · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Franklin Resources' Q4 2021 earnings were announced, revealing an increase in net income and operating income compared to the previous quarter and the same quarter last year.

Franklin Resources reported a net income of $665.7 million, or $1.30 per diluted share, for the quarter ended September 30, 2021. Operating income was $531.5 million. Total assets under management were $1,530.1 billion at the end of the quarter.

  • Net income for the quarter was $665.7 million, or $1.30 per diluted share.
  • Operating income for the quarter was $531.5 million.
  • Total assets under management were $1,530.1 billion at the end of the quarter, a decrease of 1% during the quarter.
  • The quarter includes a tax benefit of $155.1 million, or $0.30 per diluted share, due to the release of certain tax reserves.

Headline financials

Total Revenue

$2.18B

Previous: $1.71B+27.9%
EPS (adj)

$1.26

Previous: $0.56+125.0%
Total AUM

$1.53T

Previous: $1.42T+7.8%
Equity AUM

$524B

No prior period
Fixed Income AUM

$650B

No prior period
Multi-Asset AUM

$152B

No prior period
Cash Management AUM

$58.6B

No prior period
Capital Expenditures

$44.4M

Previous: $18.4M+141.3%
Free Cash Flow

$462M

Previous: $356M+29.5%
Net Income

$666M

Previous: $78.9M+743.7%
Operating Income

$532M

Previous: $104M+413.0%
Gross Profit

$912M

Previous: $506M+80.3%
Cash & Equivalents

$5.9B

Previous: $4.3B+37.2%
Total Assets

$1.53T

Previous: $1.42T+7.8%
Stock-Based Comp

$45.3M

Previous: $35.4M+28.0%

Revenue & EPS history

Franklin Resources · Revenue · Quarterly

$2.18B

Q4 2021+27.9%vs Q4 2020
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Franklin Resources · $2.18B total across 4 segments · Q4 2021

  • Investment Mgmt Fees
    $1.71B+32.8%
  • Sales & Distribution
    $408M+11.3%
  • Shareholder Servicing
    $55.6M+21.7%
  • Other Revenue
    $11.8M+47.5%

Forward guidance

Management's discussion on the company's outlook and future expectations.

Tailwinds

  • Strategic and financial benefits from the Legg Mason acquisition have exceeded goals.
  • Investment performance across specialist investment managers was strong and improved.
  • Increased and more diversified gross sales and improved redemption rates were observed.
  • Momentum in core growth areas like alternatives, wealth management, SMAs, and ESG-specific strategies.
  • Acquisition of Lexington Partners will further diversify the alternative asset management business.

Headwinds

  • Business and operations are subject to adverse effects from the outbreak and spread of contagious diseases such as COVID-19, which adverse effects may continue.
  • 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.
  • We are subject to significant risk of asset volatility from changes in the global financial, equity, debt and commodity markets.
  • Our funds may be subject to liquidity risks or an unanticipated large number of redemptions and fund closures.

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 2021

Historical avgQ4 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%

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