Franklin Resources 2Q results tops expectations

Franklin Resources 2nd-quarter performance beats analysts' expectations

Associated Press

SAN MATEO, Calif. (AP) -- Investment manager Franklin Resources' second-quarter net income climbed 14 percent as it pulled in more money from certain fees.

The performance beat Wall Street's expectations, and shares rose to a fresh all-time high Tuesday.

The San Mateo, Calif., company, which operates as Franklin Templeton Investments, earned $572.8 million, or $2.69 per share, for the three months ended March 31. A year ago it earned $503.2 million, or $2.32 per share.

Analysts surveyed by FactSet expected earnings of $2.50 per share.

Operating revenue rose 12 percent to $2.01 billion from $1.8 billion. Wall Street forecast $1.99 billion in revenue.

Investment management fees increased to $1.27 billion from $1.13 billion, while sales and distribution fees climbed to $642.7 million from $585.9 million. Shareholder servicing fees rose slightly.

Assets under management increased 5 percent to $823.7 billion.

Shares of Franklin Resources Inc. gained 62 cents to $155.50 in afternoon trading. Earlier in the day, the stock touched a new all-time high of $158.25.

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