Why Franklin Resources Stock Got Crushed Today
Shares of Franklin Resources (NYSE: BEN) have gotten crushed today, down by 11% as of 12:50 p.m. EDT, after the company reported disappointing preliminary fiscal fourth-quarter earnings results. The Franklin Templeton parent company acquired Legg Mason during the quarter in its biggest acquisition to date.
Revenue in the fiscal fourth quarter was $1.7 billion, ahead of the $1.5 billion in sales that the Street was expecting. That resulted in adjusted earnings per share of $0.56, which was worse than the $0.68 per share in adjusted profits forecast by the model used by analysts. Assets under management (AUM) jumped to $1.42 trillion at the end of the quarter due in large part to the acquisition.
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Source Fool.com
