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Mar 31, 2020
Franklin Resources Q2 2020 Earnings Report
Franklin Resources announced second quarter results, reporting a decrease in net income due to mark-to-market losses in the investment portfolio, while adjusted EPS remained relatively stable.
Key Takeaways
Franklin Resources reported a net income of $79.1 million, a significant decrease compared to the previous quarter and the same quarter last year. However, adjusted EPS was $0.66, slightly lower than the previous quarter but higher than the same quarter last year. Total assets under management (AUM) decreased to $580.3 billion.
Net income was $79.1 million, or $0.16 per diluted share, down from $367.5 million, or $0.72 per diluted share, year-over-year.
Adjusted net income was $332.8 million, or $0.66 per diluted share, compared to $330.6 million, or $0.65 per diluted share, in the prior year.
Assets under management (AUM) totaled $580.3 billion, a decrease of 19% year-over-year.
The acquisition of Legg Mason is on track to close in the third quarter of the calendar year.
Franklin Resources
Franklin Resources
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Franklin Resources Revenue by Geographic Location
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CapyFin.comSales & Distribution Revenue
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CapyFin.com Forward Guidance
Franklin Templeton's acquisition of Legg Mason remains on track to close in the third quarter of the calendar year. The combined company will offer a broader range of leading investment strategies, a more encompassing geographical presence, a diversified client base, and a resilient and adaptable platform.
Positive Outlook
- Acquisition of Legg Mason remains on track.
- Combined company will offer a broader range of leading investment strategies.
- Combined company will have a more encompassing geographical presence.
- Combined company will have a diversified client base.
- Combined company will have a resilient and adaptable platform.
Challenges Ahead
- Business and operations are subject to adverse effects from the outbreak and spread of contagious diseases such as COVID-19.
- Volatility and disruption of the capital and credit markets, and adverse changes in the global economy, may significantly affect results of operations.
- The amount and mix of AUM are subject to significant fluctuations.
- Subject to significant risk of asset volatility from changes in the global financial, equity, debt and commodity markets.
- Funds may be subject to liquidity risks or an unanticipated large number of redemptions.
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Visualization of income flow from segment revenue to net income