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Franklin Resources
🇺🇸 NYSE:BEN
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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.

Total Revenue
$1.34B
Previous year: $1.43B
-6.7%
EPS
$0.66
Previous year: $0.72
-8.3%
Total AUM
$580B
Previous year: $712B
-18.5%
Gross Profit
$549M
Previous year: $575M
-4.5%
Cash and Equivalents
$7.6B
Previous year: $5.95B
+27.8%
Free Cash Flow
$61.5M
Previous year: $143M
-57.0%
Total Assets
$580B
Previous year: $14.2B
+3975.4%

Franklin Resources

Franklin Resources

Franklin Resources Revenue by Segment

Franklin Resources Revenue by Geographic Location

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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Franklin Resources