Franklin Resources, Inc. : Franklin Resources 2Q Net Flat; Assets Under Management Rise
05/02/2012| 09:07am US/Eastern
Franklin Resources Inc.'s (BEN) earnings edged up in the fiscal second quarter as the mutual-fund company's revenue grew more than expected, though margins declined.
Investors have flocked back to stocks, driving the Dow Industrial Average to hit a new four-year high on Tuesday. But recent quarters haven't been as smooth, with last year's historic downgrade of the U.S. credit rating and a raging European debt crisis alarming the skittish.
Franklin on Wednesday reported assets under management totaling $725.7 billion, up from $670.3 billion at the end of the previous quarter, and $703.5 billion a year earlier. Asset growth was driven by $50.9 billion in market appreciation and net new flows of $5.6 billion.
The company posted a profit of $503.2 million, or $2.32 a share, up from $503.1 million, or $2.25 a share, a year earlier. Revenue increased 2.8% to $1.8 billion.
Analysts surveyed by Thomson Reuters recently forecast per-share earnings of $2.22 a share on revenue of $1.74 billion.
Operating margin narrowed to 34.3% from 36%.
Shares closed Tuesday at $125.93 and were inactive premarket. The stock is up 31% so far this year.
-By Kristin Jones; Dow Jones Newswires; 212-416-2208; email@example.com