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Jun 30, 2024

Franklin Resources Q3 2024 Earnings Report

Franklin Resources announced third quarter results, demonstrating progress in diversification and technology investments.

Key Takeaways

Franklin Resources reported net income of $174.0 million, or $0.32 per diluted share, for the quarter ended June 30, 2024. The company saw positive developments across its business, with client demand leading to positive net flows in multi-asset and alternative strategies. The company is also investing in technology to optimize the client experience and support business growth.

Positive net flows in multi-asset and alternative strategies were observed.

ETFs generated net inflows of over $3 billion, reaching $27 billion in AUM.

Non-U.S. business experienced a fifth consecutive quarter of positive net flows, with approximately $492 billion in AUM.

The company is collaborating with Microsoft to build an advanced financial AI platform.

Total Revenue
$2.12B
Previous year: $1.97B
+7.8%
EPS
$0.6
Previous year: $0.63
-4.8%
Total AUM
$1.65T
Previous year: $1.43T
+15.0%
Equity AUM
$595B
Previous year: $458B
+29.9%
Fixed Income AUM
$565B
Previous year: $505B
+11.8%
Gross Profit
$1.5B
Previous year: $986M
+52.7%
Cash and Equivalents
$5.6B
Previous year: $6B
-6.7%
Free Cash Flow
$469M
Previous year: $576M
-18.7%
Total Assets
$33.3B
Previous year: $1.43T
-97.7%

Franklin Resources

Franklin Resources

Franklin Resources Revenue by Segment

Franklin Resources Revenue by Geographic Location

Forward Guidance

Looking ahead, Franklin Resources will continue to invest in the business to support its strategic priorities in asset management and wealth management.

Positive Outlook

  • Investing in technology across distribution.
  • Investing in technology across investment management.
  • Investing in technology across operations.
  • Simplification of operation.
  • Reduce long-term capital expenditures.

Challenges Ahead

  • Market and volatility risks.
  • Investment performance and reputational risks.
  • Global operational risks.
  • Competition and distribution risks.
  • Third-party risks.

Revenue & Expenses

Visualization of income flow from segment revenue to net income