Franklin Resources 4Q Profit Rises 22%, Tops Estimates

   DOW JONES NEWSWIRES 
 

Franklin Resources Inc. (BEN) fiscal fourth-quarter earnings rose 22% amid investment gains and as assets under management increased.

An improving market has helped raise asset levels and bring investors back into the market. Rival fund operators T. Rowe Price Group Inc. (TROW), Invesco Ltd. (IVZ) and Janus Capital Group Inc. (JNS), which reported earnings last week, showed signs the sector is stabilizing, with assets under management increasing sequentially.

For the quarter ended Sept. 30, Franklin Resources reported a profit of $367.4 million, or $1.60 a share, up from $300.5 million, or $1.28 a share, a year earlier.

The latest period included $87.2 million net in investment and other income, as well as $31.9 million in sponsored investment product gains, while the prior year included gains of $77.8 million and a loss of $35.5 million, respectively.

Revenue decreased 6% to $1.24 billion as investment management fees fell 12%.

Analysts polled by Thomson Reuters most recently forecast earnings of $1.33 on revenue of $1.22 billion.

Operating margin edged down to 31.1% from 31.2%.

Assets under management rose to $523.4 billion as of Sept. 30 from $451.2 billion at June 30, and $507.3 billion a year earlier. Net fund inflows were $12.2 billion in the quarter.

Shares closed Monday at $113.02 and didn't trade premarket. The stock has more than doubled in the past year.

-By Tess Stynes, Dow Jones Newswires; 212-416-2481; [e-mail];