Franklin Resources Inc
BEN
$23.40 1.12%
Exchange: NYSE | Sector: Financial Services | Industry: Asset Management
Q4 2024
Published: Nov 12, 2024

Earnings Highlights

  • Revenue of $2.21B up 11.3% year-over-year
  • EPS of $-0.16 decreased by 127.6% from previous year
  • Gross margin of 77.5%
  • Net income of -84.70M
  • ""the press tends to report that Western Asset is our largest specialist investment manager, but that's just by AUM. I think you know that, Bill, along with everybody else that covers us. But obviously, a much more important measure, of course, is financial contribution of the business."" - Matt Nicholls
BEN
Company BEN

Executive Summary

Franklin Resources, Inc. (BEN) reported Q4 2024 revenue of $2.211B and GAAP net income of -$84.7M, with adjusted metrics showing resilient operating performance despite the Western Asset challenges. Ending AUM reached $1.68T, reflecting a 2% QoQ increase, while average AUM rose to $1.67T. The quarter featured a significant non-cash impairment related to Western Asset mutual fund contracts (GAAP) of $389.2M, which depressed GAAP net income and EPS, but did not affect adjusted earnings streams. The Putnam integration contributed to adjusted revenues and flows, helping offset Western-related headwinds through nine months of Putnam activity. Management stressed ongoing diversification, with meaningful progress in ETFs, Canvas, and private markets (substantial fundraising target: at least $100B over five years). In the near term, capital deployment and cost discipline remain central as the firm works through Western-related dynamics and accelerates growth in higher-growth areas such as private markets, real estate debt, and wealth-management platforms.\n\nKey takeaways for investors: (1) Adjusted operating margin at 26.3% in Q4 and 26.1% for the full year 2024 reflect ongoing operating discipline despite revenue dilution from Western; (2) Western outflows and related investigations pose near-term earnings risk but are anticipated to be partly offset by Putnam, ETFs, Canvas, and private markets mix; (3) the 5-year target of at least $100B in private markets fundraising remains central to growth, supported by a broadening product suite and geographic reach; (4) management guidance for 2025 indicates a mid- to high-3% basis point range for the adjusted expense rate (EFR) with stable cost structures, underscoring a focus on expense control and platform unification across public market specialists.

Key Performance Indicators

Revenue
Increasing
2.21B
QoQ: 5.37% | YoY: 11.33%
Gross Profit
Increasing
1.71B
77.53% margin
QoQ: 13.94% | YoY: 47.81%
Operating Income
Decreasing
238.50M
QoQ: -2.65% | YoY: -29.50%
Net Income
Decreasing
-84.70M
QoQ: -148.68% | YoY: -128.66%
EPS
Decreasing
-0.16
QoQ: -150.00% | YoY: -127.59%

Revenue Trend

Margin Analysis

Historical Earnings Comparison

PeriodRevenue ($M)EPS ($)YoY GrowthReport
Q2 2025 2,111.40 0.29 -1.1% View
Q1 2025 2,251.60 0.29 +13.1% View
Q4 2024 2,211.20 -0.16 +11.3% View
Q3 2024 2,098.60 0.32 +6.6% View
Q2 2024 2,134.30 0.23 +10.8% View