[Financial Highlights](index=1&type=section&id=Financial%20Highlights) Franklin Resources reported GAAP net income of **$174.0 million** and adjusted net income of **$326.4 million** for Q3 2024, with total AUM reaching **$1,646.6 billion** - The company repurchased **4.3 million** shares of its common stock for a total cost of **$101.5 million** during the quarter[8](index=8&type=chunk) Q3 2024 Key Financial Results (GAAP) | Metric | Q3 2024 (ended Jun 30) | Q2 2024 (ended Mar 31) | Q3 2023 (ended Jun 30) | | :--- | :--- | :--- | :--- | | Net Income | $174.0M | $124.2M | $227.5M | | Diluted EPS | $0.32 | $0.23 | $0.44 | | Operating Income | $222.5M | $129.3M | $314.9M | Q3 2024 Key Financial Results (Adjusted, Non-GAAP) | Metric | Q3 2024 (ended Jun 30) | Q2 2024 (ended Mar 31) | Q3 2023 (ended Jun 30) | | :--- | :--- | :--- | :--- | | Adjusted Net Income | $326.4M | $306.6M | $326.1M | | Adjusted Diluted EPS | $0.60 | $0.56 | $0.63 | | Adjusted Operating Income | $424.9M | $419.6M | $476.8M | [CEO Commentary and Strategic Initiatives](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Initiatives) CEO Jenny Johnson highlighted diversification, strong net flows in key areas, and strategic technology investments - The company is executing its long-term diversification plan, leading to positive net flows in multi-asset and alternative strategies[4](index=4&type=chunk) - Strong performance was noted in retail Separately Managed Accounts (SMAs), Canvas®, and Exchange-Traded Funds (ETFs), with ETFs generating over **$3 billion** in net inflows[4](index=4&type=chunk) - The non-U.S. business recorded its fifth consecutive quarter of positive net flows, ending the quarter with approximately **$492 billion** in AUM[4](index=4&type=chunk) - Key technology and strategic investments announced during the quarter include: - Collaboration with Microsoft to build an advanced financial AI platform for sales and marketing[5](index=5&type=chunk) - A planned strategic minority investment in Envestnet[5](index=5&type=chunk) - Selection of a single platform to unify investment management technologies across public market asset classes[5](index=5&type=chunk) [Assets Under Management (AUM) and Flows](index=2&type=section&id=Assets%20Under%20Management%20%28AUM%29%20and%20Flows) Total AUM reached **$1,646.6 billion** as of June 30, 2024, influenced by cash management inflows, market changes, and long-term outflows [AUM and Flows Summary](index=2&type=section&id=AUM%20and%20Flows%20Summary) - Total AUM increased by **15%** year-over-year, from **$1,431.5 billion** at June 30, 2023 to **$1,646.6 billion** at June 30, 2024[7](index=7&type=chunk) AUM and Flows Summary (in billions) | Metric | Three Months Ended Jun 30, 2024 | Three Months Ended Jun 30, 2023 | | :--- | :--- | :--- | | Beginning AUM | $1,644.7 | $1,422.1 | | Long-term net flows | $(3.2) | $0.2 | | Cash management net flows | $3.0 | $(7.3) | | Total net flows | $(0.2) | $(7.1) | | Net market change, distributions and other | $2.1 | $16.5 | | **Ending AUM** | **$1,646.6** | **$1,431.5** | [AUM by Asset Class](index=5&type=section&id=AUM%20by%20Asset%20Class) AUM by Asset Class (in billions) | Asset Class | Jun 30, 2024 | Mar 31, 2024 | Jun 30, 2023 | | :--- | :--- | :--- | :--- | | Equity | $595.0 | $592.7 | $458.0 | | Fixed Income | $564.5 | $571.4 | $505.1 | | Alternative | $254.5 | $255.5 | $257.2 | | Multi-Asset | $168.1 | $163.4 | $148.3 | | Cash Management | $64.5 | $61.7 | $62.9 | | **Total AUM** | **$1,646.6** | **$1,644.7** | **$1,431.5** | [AUM by Sales Region](index=5&type=section&id=AUM%20by%20Sales%20Region) AUM by Sales Region (in billions) | Region | Jun 30, 2024 | Mar 31, 2024 | Jun 30, 2023 | | :--- | :--- | :--- | :--- | | United States | $1,155.0 | $1,155.9 | $1,026.0 | | International | $491.6 | $488.8 | $405.5 | | **Total AUM** | **$1,646.6** | **$1,644.7** | **$1,431.5** | [Detailed AUM Flows by Asset Class](index=6&type=section&id=Detailed%20AUM%20Flows%20by%20Asset%20Class) - For the quarter, Alternative and Multi-Asset strategies experienced positive long-term net inflows of **$1.4 billion** and **$1.8 billion** respectively, while Equity and Fixed Income saw long-term net outflows[17](index=17&type=chunk) Net Flows by Asset Class for Q3 2024 (in billions) | Asset Class | Long-term Net Flows | Cash Management Net Flows | Total Net Flows | | :--- | :--- | :--- | :--- | | Equity | $(1.6) | — | $(1.6) | | Fixed Income | $(4.8) | — | $(4.8) | | Alternative | $1.4 | — | $1.4 | | Multi-Asset | $1.8 | — | $1.8 | | Cash Management | — | $3.0 | $3.0 | | **Total** | **$(3.2)** | **$3.0** | **$(0.2)** | [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) Q3 2024 saw total operating revenues of **$2.12 billion**, operating income of **$222.5 million**, and net income of **$174.0 million** - Quarter-over-quarter, operating income increased **72%** from **$129.3 million** in Q2 2024 to **$222.5 million** in Q3 2024, primarily due to a **13%** decrease in compensation and benefits expense[13](index=13&type=chunk) Consolidated Statement of Income Summary (Three Months Ended June 30) | (in millions, except per share data) | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | Total operating revenues | $2,122.9 | $1,969.0 | 8% | | Total operating expenses | $1,900.4 | $1,654.1 | 15% | | **Operating Income** | **$222.5** | **$314.9** | **(29%)** | | **Net Income Attributable to Franklin Resources, Inc.** | **$174.0** | **$227.5** | **(24%)** | | Diluted Earnings per Share | $0.32 | $0.44 | (27%) | | Dividends Declared per Share | $0.31 | $0.30 | 3% | [Supplemental Non-GAAP Financial Measures](index=7&type=section&id=Supplemental%20Non-GAAP%20Financial%20Measures) Non-GAAP measures, including adjusted operating income and net income, are provided to offer useful financial performance indicators and facilitate peer comparison - Management believes non-GAAP measures are useful for evaluating relative performance against industry peers by excluding certain items not considered reflective of underlying operations[19](index=19&type=chunk) - Key adjustments to derive non-GAAP figures include excluding acquisition-related items (retention, amortization), special termination benefits, and the impact of consolidating investment products[21](index=21&type=chunk)[24](index=24&type=chunk) Reconciliation of GAAP to Adjusted Operating Income (in millions) | | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | **Operating income (GAAP)** | **$222.5** | **$129.3** | **$314.9** | | Adjustments (e.g., acquisition-related, amortization) | $202.4 | $290.3 | $161.9 | | **Adjusted operating income (Non-GAAP)** | **$424.9** | **$419.6** | **$476.8** | Reconciliation of GAAP to Adjusted Net Income (in millions) | | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | **Net income attributable to Franklin Resources, Inc. (GAAP)** | **$174.0** | **$124.2** | **$227.5** | | Adjustments (net of tax) | $152.4 | $182.4 | $98.6 | | **Adjusted net income (Non-GAAP)** | **$326.4** | **$306.6** | **$326.1** | [Company Overview and Forward-Looking Statements](index=11&type=section&id=Company%20Overview%20and%20Forward-Looking%20Statements) Franklin Templeton is a global investment management firm with over **$1.6 trillion** in AUM, and this report contains forward-looking statements subject to inherent risks - Franklin Templeton is a global investment management organization with over **1,500** investment professionals and over **$1.6 trillion** in AUM as of June 30, 2024[29](index=29&type=chunk) - The report includes forward-looking statements based on current expectations and assumptions, which are subject to inherent risks and uncertainties that could cause actual results to differ materially[30](index=30&type=chunk)[31](index=31&type=chunk) - The company undertakes no obligation to update forward-looking statements unless required by law[32](index=32&type=chunk)

Core Viewpoint - Franklin Resources Inc. (BEN) is expected to report a decline in earnings for the third quarter of fiscal 2024, while revenues are anticipated to rise, reflecting mixed performance in the asset management sector [1][2]. Financial Performance - The consensus estimate for earnings is 58 cents per share, indicating a 7.9% decline from the previous year [1]. - Revenue is projected at $2.15 billion, representing a year-over-year increase of 9.2% [2]. - Franklin's total assets under management (AUM) as of June 30, 2024, are estimated at $1.66 trillion, a 20.9% increase from the prior year [3]. Market Conditions - The S&P 500 Index rose over 4% in the April-June quarter, positively impacting asset managers, although the fixed-income market lagged behind [3]. - Client activity remained decent despite lower volatility in the fixed-income market, as investors sought higher yields [4]. Revenue Breakdown - Investment management fees are estimated at $1.65 billion, down 3.9% sequentially [4]. - Sales and distribution fees are projected at $344.5 million, also reflecting a 3.9% decline from the previous quarter [4]. - Shareholder servicing fees are expected to be $61.8 million, indicating a 9% sequential decline [5]. Expense Outlook - Compensation and benefits are anticipated to total $820 million, including performance fees of $40 million [6]. - Information systems and technology expenses are projected at $150 million, with occupancy expenses at $80 million [7]. - General, administrative, and other expenses are estimated between $175 million and $180 million, influenced by advertising spending [7]. Earnings Prediction - The current Earnings ESP for Franklin is -3.13%, indicating a lower likelihood of an earnings beat [8]. - Franklin holds a Zacks Rank of 4 (Sell), suggesting a cautious outlook for the upcoming earnings report [8].

Core Viewpoint - The market anticipates a year-over-year decline in earnings for Franklin Resources (BEN) despite an increase in revenues, with the upcoming earnings report expected to be released on July 26 [1] Group 1: Earnings Expectations - Franklin Resources is expected to report quarterly earnings of $0.58 per share, reflecting a year-over-year decline of 7.9% [2] - Revenues are projected to be $2.15 billion, which is an increase of 9.2% compared to the same quarter last year [2] - The consensus EPS estimate has been revised down by 0.85% over the last 30 days, indicating a reassessment by analysts [2] Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that the Most Accurate Estimate for Franklin Resources is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.13% [5] - The stock currently holds a Zacks Rank of 4, suggesting a bearish outlook [5][6] - A positive Earnings ESP is generally a strong predictor of an earnings beat, especially when combined with a favorable Zacks Rank [4] Group 3: Historical Performance - In the last reported quarter, Franklin Resources was expected to post earnings of $0.57 per share but delivered $0.56, resulting in a surprise of -1.75% [7] - Over the past four quarters, the company has beaten consensus EPS estimates three times [7] Group 4: Market Sentiment - An earnings beat or miss may not solely determine stock price movement, as other factors can influence investor sentiment [8] - Franklin Resources does not appear to be a compelling candidate for an earnings beat, suggesting caution for investors [8]

Despite the overall market rallying in recent months, several dividend stocks have lagged behind, presenting unique opportunities for income-oriented investors. For those seeking value and steady payouts, these undervalued dividend stocks offer a rare chance to capitalize on robust performance.In this article, I will present three dividend payers that Wall Street seems to be ignoring. Despite investors overlooking these stocks, which has led them to trade at below-average valuations, these companies have co ...

Core Viewpoint - Franklin Resources Inc. (BEN) is well-positioned for growth through acquisitions, a solid distribution platform, and an organic growth strategy, but faces challenges from rising expenses and concentrated revenues from investment management fees [1][5]. Acquisitions and Growth Strategy - The company has been actively growing through acquisitions, including the recent acquisition of Putnam Investments in January 2024, which is expected to enhance its defined contribution AUM to over $100 billion [1]. - Previous acquisitions, such as Alcentra and Lexington, have strengthened its presence in various investment sectors, including private debt and real estate, aiding in the expansion of alternative investments and multi-asset solutions [2]. Assets Under Management (AUM) Performance - Franklin's AUM has shown solid growth, with a five-year CAGR of 18.7% from 2018 to 2023, despite a dip in fiscal 2022 [3]. - The company is diversifying into asset classes with rising demand, which is expected to support AUM growth, projected to achieve an 11.8% CAGR by fiscal 2026 [3]. Revenue Growth and Diversification - The company has demonstrated organic growth through an 8% CAGR in revenues over the last four fiscal years (2019-2023), with continued growth in the first half of fiscal 2024 [4]. - Franklin's distribution platform has led to increased diversification across funds and asset classes, with a focus on fixed income to expand revenue streams [4]. Revenue Concentration and Expense Challenges - A significant portion of Franklin's revenues (81.2% in the first half of fiscal 2024) comes from investment management fees, which are subject to volatility due to market fluctuations and other factors [5]. - The company has experienced a 12.5% CAGR in expenses over the last four years, with ongoing inflationary pressures and rising headcount expected to keep expenses elevated, projected to grow at a 6.5% CAGR over the next three fiscal years [6].

Franklin Resources, Inc. (BEN) reported its preliminary assets under management (AUM) of $1.64 trillion as of May 31, 2024. This reflected an increase of 2% from the prior month’s level.The improvement in AUM balance was primarily due to the impact of positive markets, partially offset by long-term net outflows. BEN recorded equity assets of $583.9 billion, which increased 3.5% from the previous month. Further, fixed income AUM of $563.6 billion at the end of May 2024 increased nearly 1% from the previous m ...

Company Overview - Brand Engagement Network Inc. (BEN) is an emerging provider of personalized customer engagement AI, focusing on conversational AI technology and human-like AI avatars [2] - The company is headquartered in Jackson, WY, and aims to transform consumer engagement in industries facing significant workforce gaps [2] - BEN's technology includes multi-modal AI engagement (text, voice, and vision) to enhance customer experience and operational efficiencies [2] Recent Developments - CoCEO Paul Chang will present at the Maxim Group's 2024 Virtual Tech Conference on June 5, 2024, at 12:30 p.m. ET [1] - The presentation will be available via live webcast and replay on the company's investor relations website [1] Technology and Innovation - BEN's success is driven by a rich portfolio of conversational AI applications, powered by a proprietary large language model developed through extensive research and development [2] - The company seeks partnerships with organizations that have complementary capabilities to achieve meaningful business outcomes [2]

maogg/E+ via Getty Images In mid-October of last year, I announced to a relatively disinterested world that I was going to hold off buying back into Franklin Resources, Inc. (NYSE:BEN) ahead of their final year earnings. Since then, the shares have returned about 4.14% against a gain of about 21.7% for the S&P 500. I thought I’d review the name yet again to see if it makes sense to buy back in. I’ve previously done relatively well on Franklin Resources, and I hope to repeat that performance. I don’t men ...

Core Viewpoint - Franklin Resources, Inc. (BEN) is positioned as a solid investment opportunity for investors seeking attractive dividend yields in a volatile macroeconomic environment, with a current dividend yield of 5.22% compared to the industry average of 1.90% [1][4]. Group 1: Dividend and Share Repurchase - BEN announced a 3.3% increase in its common stock dividend to 31 cents in December 2023, marking the fifth increase in five years with an annualized growth rate of 3.5% [1]. - The company has a share repurchase program, authorizing the repurchase of 27.2 million shares in December 2023, in addition to the 12.8 million shares available for repurchase at the end of November 2023 [2]. - In the first quarter of 2024, BEN repurchased 0.4 million shares for $11.7 million, indicating consistent capital distribution activities that may enhance investor confidence [2]. Group 2: Financial Health - As of March 31, 2024, BEN had a debt of $3.04 billion, which has decreased over recent quarters, and a liquidity position of $5.7 billion, suggesting a lower likelihood of default on debt repayments [3]. - The company's strong earnings and liquidity position support its ability to sustain dividend payments even in adverse economic conditions [3]. Group 3: Growth and Acquisitions - BEN has experienced a compounded annual growth rate (CAGR) of 18.7% in assets under management (AUM) over the last five fiscal years, despite a decline in fiscal 2022 [4]. - The company completed the acquisition of Putnam Investments in January 2024, which is expected to enhance its growth in the retirement space and increase its defined contribution AUM to over $100 billion [3][4]. - BEN's diversification into alternative asset classes is anticipated to further drive AUM growth, aligning with growing client demand [4]. Group 4: Market Performance - Over the past six months, BEN's shares have declined by 2.5%, contrasting with a 22.2% rally in the industry [4].

Going against the crowd isn’t easy. When everyone runs one way, it is hard to charge ahead in the other direction. Yet with the stock market, being a contrarian can be profitable. As Warren Buffett has said, be fearful when others are greedy, and greedy when others are fearful.Now it is quite difficult to get analysts to rate a stock as a sell. Whether it is because they don’t want their firms to lose out on potential fees from financings or just because the overall direction of the market is up so most sto ...