Franklin Resources Earnings Preview: Can This Streak Continue?

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Franklin Resources (NYSE:BEN) will report earnings before markets open on Tuesday, April 30th. Franklin Resources, Inc. provides investment advisory services to mutual fund, retirement, institutional/separate accounts and high net worth investors. The Company manages various asset classes including domestic, international/global and emerging markets equity, domestic, international and municipal fixed income, money funds, alternative investments, and hedge funds.

Here is your Cheat Sheet to Franklin Resources Earnings:

Earnings Expectations: Analysts expect earnings of $2.50 per share on revenues of $1.99 billion. Currently, the company’s P/E ratio stands at 16.55.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $2.52 to a profit $2.6. For the current year, the average estimate is a profit of $10.14, which is better than the estimate ninety days ago.

Earnings Trends:

Here’s how Franklin Resources has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 6,032 4,194 5,853 7,140 7,101
Diluted EPS ($) 6.67 3.85 6.33 8.62 8.95

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 1,702 1,799 1,784 1,816 1,902
Diluted EPS ($) 2.20 2.32 2.12 2.365 2.42

Past Performance:
Franklin Resources has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

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