Franklin Well Ahead of Ests

• By Zacks Equity Research
• On 11:17 am EDT, Wednesday October 28, 2009

Franklin Resources Inc. (NYSE: BEN - News) fourth-quarter earnings came in at $1.60 per share, ahead of the Zacks Consensus Estimate of $1.32 per share. Last year, the company had reported a profit of $1.28 per share. Results were positively impacted by an increase in its portfolio funds by $12.2 billion.

 

Total revenues declined 6% year over year to $1.2 billion. The decline was brought about by a decrease in investment management fees. Operating income for the quarter was $384.7 million, compared to $412.0 million last year. Operating expenses decreased 6% year over year to $854.2 million due to a decrease in compensation and benefits expenses and other expenses.

 

Franklin’s assets under management increased 3% year over year to $523.4 billion. The increase is attributed to increased funds flow of $12.2 billion during the quarter.

 

During the quarter, the company repurchased 1.7 million shares of its common stock for a total cost of $158.2 million.

 

The ongoing volatility and disruption of the capital and credit markets and adverse changes in the global economy have significantly affected many financial investment companies, but Franklin has sailed through.

 

Franklin Resources is a global investment management organization operating as Franklin Templeton Investments. Franklin Templeton Investments provides global and domestic investment management solutions.

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