Franklin (BEN) Q1 Earnings & Revenues Top Estimates, AUM Rises

Core Viewpoint - Franklin Resources Inc. reported adjusted earnings of 65 cents per share for Q1 fiscal 2024, exceeding the Zacks Consensus Estimate of 57 cents, with a year-over-year increase of 28% [1] - The company's results were driven by increased revenues and improved assets under management (AUM), although higher expenses posed challenges [1] Revenues & Expenses Rise - Total operating revenues increased by 1% year over year to $1.99 billion, surpassing the Zacks Consensus Estimate of $1.91 billion [2] - Investment management fees rose by 1% to $1.65 billion, while sales and distribution fees grew nearly 2% to $296.4 million [2] - Shareholder-servicing fees declined by 3% to $32.5 million, and total operating expenses also increased by 1% to $1.78 billion [2] - The operating margin improved to 10.4% from 9.9% in the previous year [2] AUM Increases - As of December 31, 2023, total AUM reached $1.46 trillion, reflecting a 5% year-over-year increase [3] - Long-term net outflows were $5 billion for the quarter, a decrease from $10.9 billion in the prior year [3] - Average AUM was $1.39 trillion, up 3% from the previous year [3] Capital Position Strong - Cash and cash equivalents, along with investments, totaled $5.6 billion, with total stockholders' equity at $12.6 billion as of December 31, 2023 [4] - The company repurchased 2.4 million shares of common stock for a total cost of $58.8 million during the quarter [4] Industry Performance - BlackRock, Inc. reported adjusted earnings of $9.66 per share for Q4 2023, exceeding estimates and reflecting an 8.2% year-over-year increase [6] - Invesco's adjusted earnings for Q4 2023 were 47 cents per share, surpassing estimates with a 20.5% year-over-year growth [6]