Franklin Resources Second-Quarter Net Profit Rises 5.3%

   By Adria Calatayud 
 

Franklin Resources Inc. (BEN) said Thursday that second-quarter net profit rose 5.3%, despite recording net outflows of $10.0 billion.

The San Mateo, Calif.-based asset manager earned a quarterly profit of $443.2 million, or 78 cents a diluted share, compared with $420.7 million, or 74 cents, for the same period last year. Analysts expected a profit of $411.5 million, or 75 cents a share, according to FactSet.

Sales rose 1.1% to $1.62 billion, from $1.60 billion for the quarter ended March 31, 2017. This compares with analysts forecasts of $1.58 billion according to FactSet.

Assets under management stood at $737.5 billion at the end of the quarter, down from $753.8 billion as of Dec. 31. The company recorded net outflows of $10.0 billion in the second quarter of fiscal 2018, it said.

"We feel that given the recent market volatility, a rising interest rate environment, and simply the cyclical nature of growth versus value, our investment teams are well positioned for the inevitable return of value outperformance," Franklin Resources Chairman and Chief Executive Greg Johnson said.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

April 26, 2018 09:03 ET (13:03 GMT)

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