Franklin Resources fourth-quarter net rises, revenue falls
(Reuters) - Asset manager Franklin Resources Inc (BEN.N) said on Thursday its quarterly profit rose and just beat Wall Street expectations, but revenue fell and expenses increased.
For its fiscal fourth quarter ended September 30, Franklin said net income rose to $492.1 million, or $2.31 per share, from $416 million, or $1.88 per share, in the same period a year earlier.
Analysts, on average, expected the San Mateo, California, company to earn $2.30 per share, according to Thomson Reuters I/B/E/S.
Operating revenue fell 1 percent to $1.82 billion, while expenses rose 4 percent to $1.19 billion.
The company reported higher net income because the year-ago period included a $116.5 million loss tied mainly to the its own investments in its funds.
Shares in Franklin have risen steadily since the summer on enthusiasm for its investments in developing markets, drawing steady inflows from investors.
The inflows continued in the September quarter. The company reported net new flows of cash from investors of $2.9 billion during the period. But that was less than the $4.8 billion added in the three months ended June 30.
Assets under management totaled $749.9 billion at September 30, up from $707.1 billion at June 30.
(Reporting By Ross Kerber; Editing by Gerald E. McCormick)