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Franklin Resources (New York Stock Exchange: BEN) the stock opened lower 3.9% in premarket trading on Monday after posting fiscal 2023 first-quarter earnings that fell more than expected as operating income tumbled and net outflows persisted over the long term amid a difficult market context during the quarter.
Adjusted EPS of $0.51, below the median analyst estimate of $0.54, fell from $0.78 in the fourth quarter and from $1.08 a year earlier.
Operating income was $1.97 billion for the quarter ended December 31, 2022, exceeding consensus of $1.85 billion, compared to $1.94 billion for the quarter ended September 30, 2022 and $2.22 billion for the quarter ended September 31, 2022. December 2021.
Operating income came in at $194.0 million, below consensus Visible Alpha of $283.3 million, down 44% from the fourth quarter and -65% compared to the prior-year quarter.
Long-term net outflows of $10.9 billion vs. $20.4 billion in the prior quarter and inflows of $24.1 billion a year earlier.
Despite its persistent long-term net outflows, the asset manager saw “the highest level of net inflows in more than a decade on cash management strategies that were driven by institutional demand for low-risk assets in this environment.” uncertain market and helped generate total net income. inflows of $6.6 billion,” said President and CEO Jenny Johnson.
Assets under management ended the quarter at $1.39 trillion compared to $1.30 trillion in the third quarter and $1.58 trillion a year ago.
Investment management fees of $1.63 billion were down 7% from the same period last year.
Previously, Franklin Resources Non-GAAP EPS of $0.51 misses by $0.03, revenue of $1.97B tops by $120M.
