Franklin Resources Q2 2021 Earnings Report
Key Takeaways
Franklin Resources, Inc. announced net income of $381.8 million, or $0.74 per diluted share, for the quarter ended March 31, 2021. The company saw an increase in gross sales of 32% from the prior quarter and positive net flows into several investment areas. Total assets under management were $1,498.9 billion at the end of the quarter.
Net income was $381.8 million, or $0.74 per diluted share.
Adjusted net income was $403.5 million, and adjusted diluted earnings per share was $0.79.
Total assets under management (AUM) were $1,498.9 billion.
Alternative asset inflows nearly doubled from the prior quarter, with record net inflows of $2.9 billion.
Franklin Resources
Franklin Resources
Franklin Resources Revenue by Segment
Franklin Resources Revenue by Geographic Location
Forward Guidance
The company did not provide a quantitative forward guidance. However, they expressed optimism about their potential and focus on helping clients.
Positive Outlook
- Experiencing organic growth in key areas.
- Strong performance and momentum across a broad base of investment strategies.
- Expanded distribution effort drove an increase in gross sales of 32% from the prior quarter.
- Positive net flows into Benefit Street Partners, Clarion Partners, ClearBridge, Fiduciary Trust International, Franklin Equity Group, Franklin Templeton Fixed Income, Martin Currie, Royce and Western Asset.
- Balance sheet continues to provide strong financial flexibility.
Challenges Ahead
- Long-term net flows were negative at $(4.2) billion.
- Subject to adverse effects from the outbreak and spread of contagious diseases such as COVID-19
- Volatility and disruption of our business and the capital and credit markets and adverse changes in the global economy may significantly affect our results of operations and may put pressure on our financial results.
- The amount and mix of our AUM are subject to significant fluctuations.
- Subject to significant risk of asset volatility from changes in the global financial, equity, debt and commodity markets.
Revenue & Expenses
Visualization of income flow from segment revenue to net income