Post-Earnings Notes - Franklin Resources

LONDON, November 14, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on Franklin Resources Inc. (NYSE: BEN). On October 27, 2014, the company reported its fourth quarter and full-year preliminary results (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Franklin Resources Inc. (Franklin Resources). During Q4 FY14, the company's total operating revenues grew 9% on a Y-o-Y basis. Further, Franklin Resources' diluted EPS for Q4 FY14 increased $0.22 from the previous year. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

During Q4 FY14, Franklin Resources' total operating revenue stood at $2,155.5 million compared with $1,984.8 million in Q4 FY13. Analysts from Bloomberg were expecting the company to report total operating revenue of $2,171.0 million in Q4 FY14. The company's operating income during the reported quarter grew 14% to $835.3 million, from $735.1 million in Q4 FY13. Franklin Resources' Q4 FY14 operating margin improved to 38.8% from 37.0% in Q4 FY13. Moreover, the company's net income increased to $640.6 million, or $1.02 per diluted share, from $509.0 million, or $0.80 per diluted share, in Q4 FY13. The free research on BEN can be downloaded as in PDF format at:

www.Investor-Edge.com/BENFreeReport

For FY14, the company reported total operating revenues of $8,491.4 million compared to $7,985.0 million in FY13. Franklin Resource' operating income increased to $3,221.2 million from $2,921.3 million, reflecting a Y-o-Y increase of 10%. The company's FY14 operating margin increased to 37.9% from 36.6% in FY13. Further for FY14, the company's net income grew to $2,384.3 million, or $3.79 per diluted share, from $2,150.2 million, or $3.37 per diluted share, in FY13. The Bloomberg analysts' had expected the company to report net income of $2,308.0 million or $3.69 per diluted share in FY14.

As on September 30, 2014, Franklin Resources' total assets under management (AUM) increased 6% to $898.0 billion from $844.7 billion on September 30, 2014, primarily due to $62.4 billion of market appreciation and other, which is net of a $6.8 billion decrease due to the impact of foreign exchange revaluation, partially offset by $4.6 billion of net new outflows. As of September 30, 2014, the company's cash and cash equivalents and investments stood at $10.0 billion, compared to $8.6 billion at September 30, 2013. During the quarter, the company repurchased 3.2 million shares of its common stock for a total consideration of $177.8 million and Franklin Resources had 622.9 million shares of common stock outstanding as on September 30, 2014. Sign up and read the free analyst's notes on BEN at:

www.Investor-Edge.com/BEN-14112014

Stock Performance  

On the day of the earnings release, October 27, 2014, Franklin Resources' stock ended the session at $53.90, up 0.92%. The stock has maintained mostly a positive trend since then. However, on the last close, Thursday, November 13, 2014, it finished at $56.80, down 0.30%, after vacillating between $56.50 and $57.26. A total of 0.81 million shares were traded which was much below its three months average volume of 1.82 million shares. Over the last one month and previous three months, the company's shares have gained 12.92% and 4.43%, respectively. However, the company's stock has lost 1.61% since the beginning of this year. Shares in Franklin Resources closed above their 50-day and 200-day moving averages of $54.49 and $54.54, respectively. Furthermore, the stock traded at a PE ratio of 15.20 and has a Relative Strength Index (RSI) of 68.50. Visit Investor-Edge and access the latest research on BEN at:

www.Investor-Edge.com/BENEarningsCoverage

Sneak Peek to Corporate Insider Trading  

In the last one month, there were 20 insider transactions made by 12 individuals. Between October 20, 2014 and November 11, 2014, a total of 295,755 shares of the company have been purchased by insiders at an average price of $55.68 per share and at a total value of $16,467,102. Among the major transactions: on November 04, 2014, Gregory E. Johnson, Chairman, CEO, and President at Franklin Resources, and Vijay C. Advani, Executive VP-Global Advisory Services at Franklin Resources, purchased 149,965 and 51,186 shares, respectively, at an average price of $55.68 per share. Additionally, on the same date, Jennifer J. Bolt, Senior VP and CIO, bought 28,736 shares, and Kenneth A. Lewis, Executive VP and CFO, bought 20,654 shares at an average price of $55.68 per share. Complimentary in-depth research on BEN is available at:

www.Investor-Edge.com/BENInsiderTrading

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