Factors Likely to Have Influenced Earnings Results Franklin Resources (NYSE:BEN)

Earnings results for Franklin Resources (NYSE:BEN)

Franklin Resources, Inc. is expected* to report earnings on 05/04/2021 before market open. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 5 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.74. The reported EPS for the same quarter last year was $0.66.

Franklin Resources last issued its earnings data on February 1st, 2021. The closed-end fund reported $0.73 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.72 by $0.01. The company earned $2 billion during the quarter, compared to analyst estimates of $1.96 billion. Its revenue was up 43.6% on a year-over-year basis. Franklin Resources has generated $2.61 earnings per share over the last year and currently has a price-to-earnings ratio of 18.8. Franklin Resources has confirmed that its next quarterly earnings report will be published on Tuesday, May 4th, 2021. Franklin Resources will be holding an earnings conference call on Tuesday, May 4th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Franklin Resources (NYSE:BEN)

11 Wall Street analysts have issued ratings and price targets for Franklin Resources in the last 12 months. Their average twelve-month price target is $25.16, predicting that the stock has a possible downside of 16.14%. The high price target for BEN is $36.00 and the low price target for BEN is $20.00. There are currently 5 sell ratings, 4 hold ratings and 2 buy ratings for the stock, resulting in a consensus rating of “Hold.”

Franklin Resources has received a consensus rating of Hold. The company’s average rating score is 1.73, and is based on 2 buy ratings, 4 hold ratings, and 5 sell ratings. According to analysts’ consensus price target of $25.16, Franklin Resources has a forecasted downside of 16.1% from its current price of $30.00. Franklin Resources has only been the subject of 4 research reports in the past 90 days.

Dividend Strength: Franklin Resources (NYSE:BEN)

Franklin Resources pays a meaningful dividend of 3.73%, higher than the bottom 25% of all stocks that pay dividends. Franklin Resources has been increasing its dividend for 40 years. The dividend payout ratio of Franklin Resources is 42.91%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Franklin Resources will have a dividend payout ratio of 35.44% next year. This indicates that Franklin Resources will be able to sustain or increase its dividend.

Insiders buying/selling: Franklin Resources (NYSE:BEN)

In the past three months, Franklin Resources insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $2,104,440.00 in company stock. Only 23.10% of the stock of Franklin Resources is held by insiders. 45.74% of the stock of Franklin Resources is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Franklin Resources (NYSE:BEN

Earnings for Franklin Resources are expected to grow by 4.98% in the coming year, from $3.01 to $3.16 per share. The P/E ratio of Franklin Resources is 18.75, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 24.00. The P/E ratio of Franklin Resources is 18.75, which means that it is trading at a less expensive P/E ratio than the Finance sector average P/E ratio of about 23.04. Franklin Resources has a PEG Ratio of 1.38. PEG Ratios above 1 indicate that a company could be overvalued. Franklin Resources has a P/B Ratio of 1.35. P/B Ratios below 3 indicates that a company is reasonably valued with respect to its assets and liabilities.

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