Franklin Resources reports Q2 adjusted EPS 47c, consensus 48c

Reports Q2 revenue $2.11B, consensus $2.44B. Reports Q2 ending AUM $1.54T vs $1.58T last quarter. Reports Q2 total net outflows $23.5B, including long-term net outflows of $26.2B. “Today’s complex market environment underscores the value of diversification and global scale in our business,” said Jenny Johnson, President and CEO of Franklin Resources (BEN), Inc. “As a leading manager of public and private assets, we continue to see progress across our business, with gross sales increasing across all asset classes in our second fiscal quarter. Long-term inflows increased by 9% quarter-over-quarter (excluding reinvested distributions), and multi-asset and alternatives generated a combined $9.7 billion in positive net flows. While long-term net outflows totaled $26.2 billion, excluding Western Asset Management (“Western”), we recorded $7.4 billion in long-term net inflows. We also saw strong client demand and positive flows into ETFs, retail SMAs and Canvas(R). Our ETF business saw its 14th consecutive quarter of positive net flows, attracting $4.1 billion with a record high in assets under management (“AUM”). In addition, our institutional pipeline of won-but-unfunded mandates rose by $2.3 billion to $20.4 billion – its highest level since 2022.”