Franklin Resources Earnings Preview: Analysts Expect Rising Revenue

Franklin Resources BEN unveils its next round of earnings this Tuesday, August 2, 2011. Here's Benzinga's advanced look at Franklin Resources' third quarter earnings report.

Earnings and Revenue:

Wall Street expects a EPS of $2.16 per share and revenues of $1.84 billion. Franklin Resources' latest numbers will no doubt be compared with the company's year-ago quarter, when it reported a positive EPS of $1.58 per share on revenues of $1.53 billion. We'll have to wait for Tuesday to see if Franklin Resources falls in line with analyst expectations and reports an estimated increase in both EPS and revenue from the year-ago quarter.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Franklin Resources were trading at $126.93 as of July 27, 2011. Since January 1st, shares of Franklin Resources have given investors a return of 14.6%. For a full 12 months, the return has risen by 10.6%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Franklin Resources is a Moderate Buy. This rating has strengthened over the past three months.

Competitors:

Wondering how Franklin Resources compares to rivals in the same sector? Here are a few of the company's peers.

• Ameriprise Financial AMP: Hold with a $1.35 recent quarter EPS
• BlackRock BLK: Moderate Buy with a $3.00 recent quarter EPS
• Calamos Asset Management CLMS: Moderate Sell with a $0.23 recent quarter EPS
• Cohen & Steers CNS: Hold with a $0.36 recent quarter EPS

The finance-investment management company's industry has seen price/earnings growth of 1.3% during the current fiscal year.

Finally, a description of the company's main areas of operation: Franklin Resources is a global investment manager that offers investment vehicles for individuals, institutions, pension plans, trusts, partnerships and other clients.

Take Action:

Now that you're fully prepared, get ready to take quick action if the company reports any numbers significantly different from those listed above. Also, check back in with us after the announcement for a full recap and what-to-do-next guide.

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