Core Insights - Franklin Resources (BEN) reported quarterly earnings of $0.67 per share, exceeding the Zacks Consensus Estimate of $0.57 per share, and up from $0.59 per share a year ago, representing an earnings surprise of +17.54% [1] - The company achieved revenues of $2.34 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 10.40% and increasing from $2.21 billion year-over-year [2] - Franklin Resources has outperformed the S&P 500 with a year-to-date gain of approximately 14.6% compared to the S&P 500's gain of 14.3% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.58 on revenues of $2.12 billion, while for the current fiscal year, the estimate is $2.53 on revenues of $8.49 billion [7] - The estimate revisions trend for Franklin Resources was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Financial - Investment Management industry, to which Franklin Resources belongs, is currently ranked in the top 20% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Preliminary net income for Q4 2025 was $117.6 million, or $0.21 per diluted share, a 27% increase from the previous quarter and a recovery from a net loss of $84.7 million in Q4 2024[2] - Adjusted net income for Q4 2025 was $357.5 million, a 36% increase from the previous quarter, with adjusted diluted earnings per share at $0.67[6] - Net income attributable to Franklin Resources, Inc. was $117.6 million in Q4 2025, a significant recovery from a net loss of $84.7 million in Q4 2024[12] - Earnings per share (EPS) for Q4 2025 were $0.21, compared to a loss of $0.19 per share in Q4 2024[12] - Operating income for Q4 2025 was $85.4 million, a turnaround from an operating loss of $150.7 million in Q4 2024[12] - Total operating revenues for Q4 2025 reached $2,343.7 million, a 6% increase from $2,211.2 million in Q4 2024[12] - Total operating revenues for the twelve months ended September 30, 2025, were $8,770.7 million, up from $8,478.0 million in the previous year, representing a 3.4% growth[25] - Adjusted net income for the three months ended September 30, 2025, was $357.5 million, compared to $263.4 million for the previous quarter, indicating a 35.7% increase[26] - Diluted earnings per share for the twelve months ended September 30, 2025, were $0.91, up from $0.85 in the previous year, marking a 7.1% increase[26] - Adjusted diluted earnings per share for the three months ended September 30, 2025, was $0.67, compared to $0.49 for the previous quarter, reflecting a 36.7% increase[26] Assets Under Management (AUM) - Total assets under management (AUM) reached $1,661.2 billion, up $49.4 billion during the quarter, despite $11.9 billion in long-term net outflows[6] - Alternative AUM reached a record $270 billion, bolstered by the Apera Asset Management acquisition and strong fundraising of $26.2 billion[3] - Total AUM at September 30, 2025, was $1,661.2 billion, a 3% increase from $1,611.8 billion at June 30, 2025[16] - The average AUM for the three months ended September 30, 2025, was $1,633.7 billion, a 4% increase from $1,565.2 billion for the previous quarter[15] - Equity AUM increased by 5% to $686.2 billion from $656.6 billion at June 30, 2025[15] - Fixed Income AUM decreased by 1% to $438.7 billion from $441.7 billion at June 30, 2025[15] - Total international AUM decreased by 1% to $489.7 billion from $496.9 billion at June 30, 2025[16] Cash Flow and Shareholder Returns - The company returned $930 million to shareholders through dividends and share repurchases during the fiscal year[4] - Cash and cash equivalents totaled $5.5 billion, with total stockholders' equity at $13.0 billion as of September 30, 2025[7] - The company declared dividends of $0.32 per share in Q4 2025, a 3% increase from $0.31 per share in Q4 2024[12] Operating Performance - The company reported an operating margin of 3.6% for Q4 2025, down from 7.5% in the previous quarter[6] - Total operating expenses decreased by 4% to $2,258.3 million in Q4 2025, down from $2,361.9 million in Q4 2024[12] - Operating margin improved to 3.6% in Q4 2025, compared to a negative margin of 6.8% in Q4 2024[12] - The adjusted operating margin for the twelve months ended September 30, 2025, was 24.5%, compared to 26.1% in the previous year[25] Inflows and Outflows - Long-term inflows increased to $84.6 billion, a 12% rise from the prior quarter, while long-term net outflows totaled $11.9 billion[2] - Excluding Western Asset Management, the company achieved $11.4 billion in net inflows, marking the eighth consecutive quarter of positive flows[2] - Long-term inflows for the three months ended September 30, 2025, were $84.6 billion, compared to $82.5 billion for the same period in 2024[14] - Long-term net flows for the twelve months ended September 30, 2025, were $(97.4) billion, a significant increase in outflows compared to $(32.6) billion for the previous year[14] - Cash management net flows for the three months ended September 30, 2025, were $7.2 billion, a recovery from $(0.2) billion in the same period last year[14] Future Outlook - The institutional pipeline of won-but-unfunded mandates stands at $20.4 billion, indicating a healthy outlook for future funding[2] - The company is focusing on enhancing its product offerings and expanding its market presence to drive future growth[19] Impairment and Expenses - Impairment of intangible assets decreased by 48% to $202.2 million in Q4 2025, down from $389.2 million in Q4 2024[12] - Acquisition-related retention expenses for the twelve months ended September 30, 2025, totaled $162.4 million, down from $263.6 million in the previous year[26]

Core Insights - Franklin Resources, Inc. reported a preliminary net income of $117.6 million or $0.21 per diluted share for Q4 2025, a 27% increase from the previous quarter and a recovery from a net loss of $84.7 million in Q4 2024 [1][3] - For the fiscal year ending September 30, 2025, the company achieved a net income of $524.9 million or $0.91 per diluted share, up from $464.8 million or $0.85 per diluted share in the prior year [1][3] - The company experienced long-term inflows of $84.6 billion, a 12% increase from the prior quarter, while long-term net outflows totaled $11.9 billion [3][4] Financial Performance - Preliminary operating income for Q4 2025 was $85.4 million, down from $154.1 million in the previous quarter and a loss of $150.7 million in Q4 2024 [1][7] - Adjusted net income for Q4 2025 was $357.5 million, compared to $263.4 million in the previous quarter and $315.2 million in Q4 2024 [2][7] - Total operating revenues for Q4 2025 were $2,343.7 million, a 6% increase from $2,211.2 million in the previous quarter [7][12] Asset Management and Flows - Total assets under management (AUM) reached $1,661.2 billion at September 30, 2025, reflecting a 3% increase from $1,611.8 billion at June 30, 2025 [7][16] - The company reported $44.5 billion in long-term net inflows for the fiscal year, with significant contributions from multi-asset and alternative strategies [4][16] - AUM in alternative investments reached a record $270 billion, bolstered by strong fundraising of $26.2 billion [4][16] Shareholder Returns - The company returned $930 million to shareholders through dividends and share repurchases during the fiscal year [5][8] - Cash and cash equivalents stood at $5.5 billion, with total stockholders' equity at $13.0 billion as of September 30, 2025 [8][5] Strategic Outlook - The company expressed confidence in its business strategy to capture long-term trends in the investment industry, emphasizing its global scale and client-first culture [6][5] - The institutional pipeline of won-but-unfunded mandates remains robust at $20.4 billion, indicating potential future growth [3][4]

Core Insights - Franklin Resources, Inc. (BEN) reported preliminary assets under management (AUM) of $1.69 trillion as of October 31, 2025, reflecting a 1.7% increase from the previous month driven by market performance and the acquisition of Apera Asset Management, despite long-term net outflows of $2 billion [1][7]. AUM Breakdown - Equity assets reached $697.5 billion, up 1.6% from the prior month - Alternative AUM increased by 2.2% to $269.7 billion - Fixed income AUM slightly decreased to $437.1 billion - Multi-asset AUM was $196.4 billion, a 1.3% increase - Cash management balance rose significantly by 12.2% to $88.1 billion [2][7]. Market Performance and Outlook - October showed continued improvement for BEN, with total AUM growth supported by positive market movements and the Apera Asset Management acquisition, despite ongoing outflows - Gains across equity, multi-asset, alternative, and cash management segments indicate steady progress - The company's inorganic expansion is expected to enhance long-term growth prospects [3][7]. Stock Performance - Over the past year, BEN shares have increased by 7.8%, contrasting with a 10.1% decline in the industry [4].

Core Viewpoint - Franklin Resources Inc. (BEN) is expected to report a decline in both earnings and revenues for the fourth quarter of fiscal 2025, with earnings anticipated at 57 cents, reflecting a 3.4% decrease year-over-year, and revenues estimated at $2.12 billion, indicating a 3.9% decline from the previous year [1][3]. Group 1: Earnings and Revenue Estimates - The Zacks Consensus Estimate for BEN's earnings is 57 cents, unchanged over the past week, representing a 3.4% decline from the same quarter last year [3]. - The consensus estimate for sales is $2.12 billion, suggesting a year-over-year decline of 3.9% [3]. - Franklin's earnings have beaten the consensus estimate in two of the last four quarters, with an average earnings surprise of 2.93% [2]. Group 2: Assets Under Management (AUM) - As of September 30, 2025, Franklin's preliminary total AUM was $1.66 trillion, up from $1.64 trillion at the end of August 2025, reflecting positive market impacts but offset by long-term net outflows of $11 billion [5]. - The Zacks Consensus Estimate for AUM in the fiscal fourth quarter is $1.67 trillion, indicating a 3.6% rise from the previous quarter's actual [5]. - The company's own estimate for AUM is pegged at $1.69 trillion [5]. Group 3: Fee Estimates - The Zacks Consensus Estimate for investment management fees is $1.69 billion, indicating a sequential rise of 2.9% [6]. - The consensus estimate for sales and distribution fees is $359.3 million, suggesting a 2.1% rise from the prior quarter [6]. - The estimate for shareholder servicing fees is $64.4 million, indicating a 7.5% rise from the previous quarter [6]. Group 4: Market Performance Context - The S&P 500 Index advanced nearly 8% during the July-September quarter, reflecting strong equity market performance, which likely benefited Franklin's performance [4]. - Despite the positive market trends, BEN is expected to have continued recording net outflows in the fiscal fourth quarter [5].

Company Overview - Franklin Resources, Inc. (BEN) is an asset management company with a market cap of $11.7 billion, based in San Mateo, California, offering a wide range of investment solutions across more than 150 countries [1] Performance Analysis - Over the past 52 weeks, BEN has gained 8.3%, underperforming the S&P 500 Index, which surged 17.7% [2] - Year-to-date, BEN's stock is up 11.2%, compared to the S&P 500's 16.6% increase [2] - BEN has also lagged behind the iShares U.S. Financial Services ETF (IYG), which returned 19.3% over the past 52 weeks and 13.2% year-to-date [3] Earnings Report - On August 1, BEN's shares declined slightly after its Q3 earnings release, despite reporting better-than-expected performance with operating revenue of $2.1 billion and adjusted EPS of $0.49, both exceeding analyst estimates [4] - The company's overall top line declined 2.8% year-over-year due to lower investment management fees, while adjusted EPS fell by 18.3% from the previous year [4] Future Earnings Expectations - Analysts expect BEN's EPS to decline 11.3% year-over-year to $2.12 for the current fiscal year ending in September [5] - The earnings surprise history for BEN is mixed, with the company exceeding or meeting consensus estimates in three of the last four quarters [5] Analyst Ratings - Among 13 analysts covering BEN, the consensus rating is a "Hold," consisting of three "Strong Buy," five "Hold," one "Moderate Sell," and four "Strong Sell" ratings [5] - Barclays maintained an "Underweight" rating on BEN and lowered its price target to $20, while the mean price target of $24.67 suggests a 9.1% premium from current price levels [6] - The Street-high price target of $31 indicates an upside potential of 37.1% [6]

Core Insights - Franklin Resources, Inc. (BEN) is a global investment management firm with a market cap of $11.9 billion, operating in over 150 countries and offering a variety of investment solutions [1] Earnings Expectations - The company is set to announce its fiscal Q4 2025 earnings on November 7, with analysts predicting adjusted earnings of $0.56 per share, a decrease of 5.1% from $0.59 in the same quarter last year [2] - For fiscal 2025, adjusted EPS is expected to be $2.12, down 11.3% from $2.39 in fiscal 2024, but anticipated to grow 18.4% year-over-year to $2.51 in fiscal 2026 [3] Stock Performance - Over the past 52 weeks, shares of Franklin Resources have increased by 12.5%, which is lower than the S&P 500 Index's gain of 14.7% and the Financial Select Sector SPDR Fund's return of 13.5% [4] - On October 10, shares fell by 4.1% after an analyst reiterated a "Sell" rating with a price target of $23, leading to a cautious consensus view among analysts, with an overall "Hold" rating [5]

Group 1 - Franklin Resources, Inc. (NYSE:BEN) is recognized among the 11 Low PE High Dividend Stocks to buy according to analysts [1] - BMO Capital Markets initiated coverage on Franklin Resources with an Outperform rating and a price target of $26, indicating a potential upside of approximately 13% [2][3] - The company's strong core business and growing alternatives platform are highlighted as key strengths by analysts [3] Group 2 - Franklin Resources has demonstrated robust net flows outside of its Western Asset Management (WAM) unit, with $2 billion in long-term net inflows when excluding WAM [5] - The company reported preliminary assets under management (AUM) of $1.66 trillion as of September 30, 2025, an increase from $1.64 trillion at the end of August [5] - Franklin Resources has a strong dividend performance, having increased its dividend for 49 consecutive years, making it a reliable dividend payer in the sector [4]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgent need for energy to support its growth [1][2][3] - A specific company is highlighted as a key player in the AI energy sector, owning critical energy infrastructure assets that are essential for meeting the increasing energy demands of AI technologies [3][7] Investment Landscape - Wall Street is investing hundreds of billions into AI, but there is a significant concern regarding the energy supply needed to support this technology [2] - AI data centers, such as those powering large language models, consume energy equivalent to that of small cities, indicating a looming energy crisis [2][3] - The company in focus is positioned to benefit from the surge in demand for electricity driven by AI, making it a unique investment opportunity [3][6] Company Profile - The company is described as a "toll booth" operator in the AI energy boom, collecting fees from energy exports and benefiting from the onshoring trend due to tariffs [5][6] - It possesses critical nuclear energy infrastructure assets, making it integral to America's future power strategy [7] - The company is capable of executing large-scale engineering, procurement, and construction projects across various energy sectors, including oil, gas, and renewables [7] Financial Position - The company is noted for being completely debt-free and holding a significant cash reserve, which is nearly one-third of its market capitalization [8] - It has an equity stake in another AI-related company, providing investors with indirect exposure to multiple growth engines without the associated premium [9] Market Sentiment - There is a growing interest from hedge funds in this company, which is considered undervalued and off-the-radar compared to other AI and energy stocks [9][10] - The company is trading at less than 7 times earnings, indicating a potential for significant upside as it is linked to both AI and energy sectors [10] Future Outlook - The ongoing AI infrastructure supercycle, combined with the onshoring boom and a surge in U.S. LNG exports, positions this company favorably for future growth [14] - The influx of talent into the AI sector is expected to drive continuous innovation, further solidifying the importance of energy infrastructure in supporting this growth [12][13]

Core Viewpoint - Franklin Resources (BEN) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system is based on changes in earnings estimates, which have a strong correlation with near-term stock price movements [4][6]. - Rising earnings estimates for Franklin Resources suggest an improvement in the company's underlying business, likely leading to increased stock prices [5][8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [7]. - Franklin Resources' upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10]. Recent Earnings Estimate Revisions - For the fiscal year ending September 2025, Franklin Resources is expected to earn $2.12 per share, unchanged from the previous year, but the Zacks Consensus Estimate has increased by 6.7% over the past three months [8].