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Dec 31, 2022

Franklin Resources Q1 2023 Earnings Report

Franklin Resources reported first quarter results with net income of $165.6 million and adjusted diluted earnings per share of $0.51.

Key Takeaways

Franklin Resources, Inc. announced first quarter results with a net income of $165.6 million, or $0.32 per diluted share. Despite challenging market conditions, the company saw positive developments, including net inflows into cash management strategies and key growth areas. The acquisition of Alcentra also increased alternative AUM to $257 billion.

Net income was $165.6 million, or $0.32 per diluted share.

Adjusted diluted earnings per share was $0.51.

Total assets under management (AUM) were $1,387.7 billion.

Company closed the acquisition of Alcentra, increasing alternative credit AUM to $78.5 billion.

Total Revenue
$1.97B
Previous year: $2.22B
-11.6%
EPS
$0.51
Previous year: $1.08
-52.8%
Total AUM
$1.39T
Previous year: $1.58T
-12.1%
Equity AUM
$419B
Previous year: $563B
-25.6%
Fixed Income AUM
$495B
Previous year: $642B
-22.9%
Gross Profit
$988M
Previous year: $911M
+8.4%
Cash and Equivalents
$5.6B
Previous year: $4.54B
+23.2%
Free Cash Flow
-$284M
Previous year: $150M
-289.5%
Total Assets
$1.39T
Previous year: $25B
+5451.9%

Franklin Resources

Franklin Resources

Franklin Resources Revenue by Segment

Franklin Resources Revenue by Geographic Location

Forward Guidance

Company is positioned to capitalize on industry trends to meet clients evolving needs.

Positive Outlook

  • Strong balance sheet
  • Financial discipline
  • Strategic investments in growth areas
  • Acquisition of Alcentra
  • Diversification of business

Challenges Ahead

  • Challenging market backdrop
  • Long-term net outflows of $10.9 billion
  • Operating income decreased by 65% year-over-year
  • Net income decreased by 63% year-over-year
  • Sales and distribution fees decreased by 27% year-over-year

Revenue & Expenses

Visualization of income flow from segment revenue to net income