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Franklin Resources, Inc. (BEN), headquartered in San Mateo, California, is a global investment management firm serving clients in over 150 countries. Valued at $9.1 billion by market cap, the company offers a wide range of services across equity, fixed income, alternative investments, and multi-asset strategies, and manages over $1.6 trillion in assets. The leading investment manager is expected to announce its fiscal second-quarter earnings for 2025 before the market opens on Friday, May 2.
Ahead of the event, analysts expect BEN to report a profit of $0.47 per share on a diluted basis, down 16.1% from $0.56 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions.
For the full year, analysts expect BEN to report EPS of $2.01, down 15.9% from $2.39 in fiscal 2024. However, its EPS is expected to rise 6.5% year over year to $2.14 in fiscal 2026.
BEN stock has underperformed the S&P 500’s ($SPX) 5.5% gains over the past 52 weeks, with shares down 29.4% during this period. Similarly, it considerably underperformed the Financial Select Sector SPDR Fund’s (XLF) 15.4% gains over the same time frame.
Franklin Resources' stock has underperformed recently due to substantial outflows from Western Asset Management, a subsidiary facing scrutiny from the SEC over alleged trading misconduct by former co-CIO Ken Leech.
On Jan. 31, BEN shares closed up more than 10% after reporting its Q1 results. Its adjusted EPS of $0.59 topped Wall Street expectations of $0.53. The company’s revenue was $2.3 billion, topping Wall Street forecasts of $2.1 billion.
Analysts’ consensus opinion on BEN stock is reasonably bearish, with a “Moderate Sell” rating overall. Out of 14 analysts covering the stock, eight give a “Hold,” two suggest a “Moderate Sell,” and four recommend a “Strong Sell.” BEN’s average analyst price target is $18.46, indicating a potential upside of 2.3% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
