Analysts Estimate Franklin Resources (BEN) to Report a Decline in Earnings: What to Look Out for

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]