Franklin Resources Inc. First Quarter Earnings Sneak Peek

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S&P 500 (NYSE:SPY) component Franklin Resources, Inc. (NYSE:BEN) will unveil its latest earnings on Wednesday, February 1, 2012. Franklin Resources is a global investment manager that offers investment vehicles for clients, including individuals, institutions, and trusts.

Franklin Resources, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $2.10 per share, a decline of 5.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $2.05. Between one and three months ago, the average estimate moved up. It has dropped from $2.16 during the last month. For the year, analysts are projecting profit of $8.55 per share, a decline of 0.8% from last year.

Past Earnings Performance: Last quarter, the company missed estimates by 11 cents, coming in at net income of $1.88 per share versus a mean estimate of profit of $1.99 per share. In the third quarter of the last fiscal year, the company beat estimates by 10 cents.

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Wall St. Revenue Expectations: Analysts are projecting no change in revenue from the year-earlier quarter to $1.7 billion.

Analyst Ratings: Analysts are bullish on Franklin Resources as eight analysts rate it as a buy, one rates it as a sell and seven rate it as a hold.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 11.5% to $416 million ($1.89 a share) from $372.9 million ($1.65 a share) the year earlier, but fell short analyst expectations. Revenue rose 2.8% to $1.61 billion from $1.57 billion.

Key Stats:

The company has seen net income rise in three straight quarters. Net income rose 39.6% in the third quarter of the last fiscal year and 41% in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue rose 23.9% in the third quarter of the last fiscal year from the year earlier, climbed 23.7% in the second quarter of the last fiscal year from the year-ago quarter and 22.5% in the first quarter of the last fiscal year.

Competitors to Watch: Federated Investors, Inc. (NYSE:FII), Cohen & Steers, Inc. (NYSE:CNS), Calamos Asset Management, Inc (NASDAQ:CLMS), U.S. Global Investors, Inc. (NASDAQ:GROW), Waddell & Reed Financial, Inc. (NYSE:WDR), T. Rowe Price Group, Inc. (NASDAQ:TROW), Janus Capital Group Inc. (NYSE:JNS), Virtus Investment Partners, Inc. (NASDAQ:VRTS), BlackRock, Inc. (NYSE:BLK), and Ameriprise Financial, Inc. (NYSE:AMP).

Stock Price Performance: During November 28, 2011 to January 26, 2012, the stock price had risen $14.74 (16%) from $91.94 to $106.68. The stock price saw one of its best stretches over the last year between January 13, 2012 and January 26, 2012 when shares rose for nine-straight days, rising 10.8% (+$10.42) over that span. It saw one of its worst periods between November 11, 2011 and November 25, 2011 when shares fell for 10-straight days, falling 14.8% (-$15.58) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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