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BEN NYSE· Franklin Resources, Inc
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BEN NYSE· Franklin Resources, Inc
Earnings report Q4 2023

Franklin Resources, Inc. Reports Steady Revenue Growth in Latest Quarter

Segments of revenue

Franklin Resources, Inc., also known as BEN, reported operating revenues of $1.99 billion for the latest quarter. The breakdown of revenue sources includes investment management fees of $1.65 billion, sales and distribution fees of $296.4 million, shareholder servicing fees of $32.5 million, and other revenue of $10 million.

Strengths

BEN demonstrated a positive performance in terms of revenue growth in the latest quarter. The company's operating revenues increased by 1% compared to the same period last year, reaching $1.99 billion. This growth can be attributed to the positive returns in global equity markets, particularly in developed markets, which saw the S&P 500 Index and MSCI World Index increase by 11.7% and 11.5% respectively. The company's management highlighted the positive impact of these market conditions on their revenue generation.

Challenges

While BEN experienced overall revenue growth, there were some challenges in specific areas. Sales and distribution fees increased slightly from $291.9 million to $296.4 million, indicating a modest growth rate. Additionally, the company's operating margin increased from 9.9% to 10.4%, reflecting a slight improvement but still indicating room for further optimization.

Noteworthy

It is worth noting that BEN's adjusted operating income increased by 6% to $417 million, and adjusted net income rose by 25% to $328.5 million. These figures indicate that the company's financial performance improved when adjusted for certain non-GAAP measures. The management attributed this improvement to their effective cost management strategies and the positive impact of market conditions on their investment activities.

Summary

Franklin Resources, Inc. (BEN) reported steady revenue growth in the latest quarter, with operating revenues reaching $1.99 billion. The company benefited from positive returns in global equity markets, particularly in developed markets. While there were some challenges in specific revenue segments, BEN's adjusted operating income and adjusted net income showed significant improvement. Overall, BEN's financial performance in the latest quarter reflects a positive trend, supported by effective cost management and favorable market conditions.

Source documents

Form 10-Q  filed on Jan 29, 2024
93 pages scanned

Reference data

Company financials Q4 revenue 0
Analyst estimates Q4 EPS missed by 0.00%
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