Franklin Resources Inc. (BEN) reported earnings on Mon 1 Nov 21 (b/o)

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Franklin Resources announces agreement to acquire Lexington Partners for aggregate cash payments of $1.75 bln

• Franklin Resources, operating as Franklin Templeton, has entered into a definitive agreement to acquire Lexington Partners, a global manager of secondary private equity and co-investment funds. This acquisition will bolster Franklin Templeton's alternative asset capabilities at a time when investors are increasingly allocating capital across the full spectrum of alternative asset offerings.
  • With the addition of Lexington, Franklin Templeton's alternative assets under management are expected to be approx. $200 bln at the time of transaction close.
• Franklin Templeton is acquiring 100% of Lexington from its current owners, for aggregate cash payments of $1.75 bln, made up of $1 bln at close and additional payments totaling $750 mln over the next three years.
  • As part of the transaction, Lexington partners and employees will simultaneously be granted a 25% ownership stake in Lexington vesting over five years and $338 mln of performance-based cash retention awards to be paid out over approx. five years.
  • The transaction will be funded from Franklin Templeton's existing balance sheet resources and is expected to be immediately accretive to adj. EPS.
• The transaction is expected to close by the end of Q2 of 2022.

Franklin Resources beats by $0.40, reports revs in-line

• Reports Q4 (Sep) earnings of $1.26 per share, excluding non-recurring items, $0.40 better than the S&P Capital IQ Consensus of $0.86; revenues rose 27.9% year/year to $2.18 bln vs the $2.16 bln two analyst estimate.
• Total assets under management were $1,530.1 billion at September 30, 2021, down $22.0 billion or 1% during the quarter due to $11.7 billion of net market change, distributions and other, $9.9 billion of long-term net outflows and $3.9 billion of cash management net outflows, slightly offset by $3.5 billion from an acquisition.
• AUM increased $111.2 billion or 8% during the fiscal year due to $148.0 billion of net market change, distributions and other, and $3.5 billion from an acquisition, partially offset by $25.2 billion of long-term net outflows and $15.1 billion of cash management net outflows.

-=Legg Mason (LM) to be acquired by Franklin Resources (BEN) for $50.00/share

• Legg Mason (LM) has been driven by the increasingly challenging business prospects for actively-managed funds, which is an issue for many other companies in the space.

Legg Mason to be acquired by Franklin Resources (BEN) for $50.00/share in all-cash transaction

BEN states, "The acquisition of Legg Mason and its multiple investment affiliates, which collectively manage over $806 billion in assets as of January 31, 2020, will establish Franklin Templeton as one of the world's largest independent, specialized global investment managers with a combined $1.5 trillion in assets under management (AUM) across one of the broadest ranges of high-quality investment teams in the industry."

• This transaction is expected to generate upper twenties percentage GAAP EPS accretion in Fiscal 2021 (based on street consensus earnings estimates for each company), excluding one-time charges, non-recurring and acquisition related expenses.
• BEN will also assume approximately $2 billion of Legg Mason's outstanding debt.
• This transaction is subject to customary closing conditions, including receipt of applicable regulatory approvals and approval by Legg Mason's shareholders, and is expected to close no later than the third calendar quarter of 2020.

=Franklin Resources Inc. (BEN) reported earnings on Thur 25 Oct 2018 (b/o)

SAN MATEO, Calif. (AP) _ Franklin Resources Inc. (BEN) on Thursday reported fiscal fourth-quarter profit of $502.5 million.

On a per-share basis, the San Mateo, California-based company said it had net income of 96 cents. Earnings, adjusted for pretax gains, were 79 cents per share.

The results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of 74 cents per share.

The investment manager posted revenue of $1.53 billion in the period, falling short of Street forecasts. Three analysts surveyed by Zacks expected $1.55 billion.

For the year, the company reported profit of $764.4 million, or $1.39 per share. Revenue was reported as $6.32 billion.

Franklin Resources shares have decreased 35 percent since the beginning of the year, while the Standard & Poor's 500 index has declined nearly 1 percent. The stock has dropped 37 percent in the last 12 months.

Franklin Resources (BEN) reported earnings on Fri 27 Jan 2017 (b/o)

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** charts after earnings **

Franklin Resources beats by $0.09, misses on revs :

• Reports Q1 (Dec) earnings of $0.77 per share, $0.09 better than the Capital IQ Consensus of $0.68; revenues fell 11.2% year/year to $1.56 bln vs the $1.59 bln Capital IQ Consensus. Total assets under management were $720.0 billion at December 31, 2016, down $13.3 billion during the quarter primarily due to $14.4 billion of net outflows.