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Mar 31, 2023

Franklin Resources Q2 2023 Earnings Report

Franklin Resources reported second quarter results with improved investment performance and positive momentum across its business.

Key Takeaways

Franklin Resources reported net income of $194.2 million, or $0.38 per diluted share, for the quarter ended March 31, 2023. The company saw positive momentum across its business, including long-term flows, relative investment performance, and diversification by product and vehicle. Total assets under management were $1,422.1 billion at the end of the quarter.

Net income was $194.2 million, or $0.38 per diluted share.

Adjusted net income was $316.7 million, or $0.61 per diluted share.

Total assets under management were $1,422.1 billion.

Long-term net outflows were $3.7 billion.

Total Revenue
$1.93B
Previous year: $2.08B
-7.4%
EPS
$0.61
Previous year: $0.96
-36.5%
Total AUM
$1.42T
Previous year: $1.48T
-3.7%
Equity AUM
$437B
Previous year: $515B
-15.2%
Fixed Income AUM
$510B
Previous year: $595B
-14.3%
Gross Profit
$673M
Previous year: $846M
-20.4%
Cash and Equivalents
$5.8B
Previous year: $5.8B
+0.0%
Free Cash Flow
-$48.8M
Previous year: $78.3M
-162.3%
Total Assets
$1.42T
Previous year: $1.48T
-3.7%

Franklin Resources

Franklin Resources

Franklin Resources Revenue by Segment

Franklin Resources Revenue by Geographic Location

Forward Guidance

The document does not contain specific forward guidance. It generally discusses the company's strategies for growth and investment in a volatile market environment.

Positive Outlook

  • Continued positive momentum across the business.
  • Improved investment performance across asset classes.
  • Diversification by product and vehicle.
  • Strong balance sheet and financial flexibility.
  • Progress in ETFs and Custom Indexing solution platform.

Challenges Ahead

  • Difficult market backdrop exacerbated by stress in the regional banking sector.
  • Long-term net outflows of $3.7 billion.
  • Cash management net outflows of $4.3 billion.
  • Decrease in operating revenues compared to the previous year.
  • Decrease in net income compared to the previous year.

Revenue & Expenses

Visualization of income flow from segment revenue to net income