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Sep 30, 2021
Franklin Resources Q4 2021 Earnings Report
Franklin Resources' Q4 2021 earnings were announced, revealing an increase in net income and operating income compared to the previous quarter and the same quarter last year.
Key Takeaways
Franklin Resources reported a net income of $665.7 million, or $1.30 per diluted share, for the quarter ended September 30, 2021. Operating income was $531.5 million. Total assets under management were $1,530.1 billion at the end of the quarter.
Net income for the quarter was $665.7 million, or $1.30 per diluted share.
Operating income for the quarter was $531.5 million.
Total assets under management were $1,530.1 billion at the end of the quarter, a decrease of 1% during the quarter.
The quarter includes a tax benefit of $155.1 million, or $0.30 per diluted share, due to the release of certain tax reserves.
Franklin Resources
Franklin Resources
Franklin Resources Revenue by Segment
Franklin Resources Revenue by Geographic Location
Forward Guidance
Management's discussion on the company's outlook and future expectations.
Positive Outlook
- Strategic and financial benefits from the Legg Mason acquisition have exceeded goals.
- Investment performance across specialist investment managers was strong and improved.
- Increased and more diversified gross sales and improved redemption rates were observed.
- Momentum in core growth areas like alternatives, wealth management, SMAs, and ESG-specific strategies.
- Acquisition of Lexington Partners will further diversify the alternative asset management business.
Challenges Ahead
- Business and operations are subject to adverse effects from the outbreak and spread of contagious diseases such as COVID-19, which adverse effects may continue.
- 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.
- We are subject to significant risk of asset volatility from changes in the global financial, equity, debt and commodity markets.
- Our funds may be subject to liquidity risks or an unanticipated large number of redemptions and fund closures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income