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Dec 31, 2019

Franklin Resources Q1 2020 Earnings Report

Franklin Resources reported first quarter results with increased net income and diluted earnings per share.

Key Takeaways

Franklin Resources, Inc. announced net income of $350.5 million or $0.70 per diluted share for the quarter ended December 31, 2019, as compared to $275.9 million or $0.54 per diluted share for the quarter ended December 31, 2018. Total assets under management were $698.3 billion at December 31, 2019.

Net income increased to $350.5 million, up from $275.9 million in the same quarter last year.

Diluted earnings per share rose to $0.70, compared to $0.54 in the prior year's quarter.

Total assets under management reached $698.3 billion.

The company repurchased 4.6 million shares of its common stock for a total cost of $123.6 million during the quarter.

Total Revenue
$1.41B
Previous year: $1.41B
+0.1%
EPS
$0.7
Previous year: $0.54
+29.6%
Total AUM
$698B
Previous year: $650B
+7.4%
Equity AUM
$281B
Fixed Income AUM
$271B
Gross Profit
$579M
Previous year: $612M
-5.3%
Cash and Equivalents
$7.8B
Previous year: $6.66B
+17.1%
Free Cash Flow
$6M
Previous year: $229M
-97.4%
Total Assets
$15B
Previous year: $14B
+7.5%

Franklin Resources

Franklin Resources

Franklin Resources Revenue by Segment

Franklin Resources Revenue by Geographic Location

Forward Guidance

This press release contains forward-looking statements that involve risks and uncertainties, and actual results could differ materially. The company undertakes no obligation to update any forward-looking statement.

Positive Outlook

  • The company has expertise across all asset classes.
  • The company has global and domestic investment management.
  • The company has more than 600 investment professionals.
  • The company has employees in over 30 countries.
  • The company has more than 70 years of investment experience.

Challenges Ahead

  • Volatility and disruption of the capital and credit markets may significantly affect our 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 markets.
  • Poor investment performance of our products could reduce the level of our AUM.
  • Harm to our reputation may negatively impact our revenues and income.

Revenue & Expenses

Visualization of income flow from segment revenue to net income