Asset managers turned in mixed earnings reports Thursday, as fund giants Franklin Resources (BEN - Get Report) and T. Rowe Price (TROW - Get Report) beat Wall Street's estimates, but Janus Capital (JNS - Get Report) posted disappointing results.
As a whole, asset managers were expected to post weakened second-quarter results after a rocky equities market. Analysts had
The profit picture was bright at Franklin Resources, the parent of Franklin Templeton Investments. The company's fiscal third-quarter earnings jumped 41% to $371.4 million, or $1.41 a share, from $261.9 million, or $1 a share, a year earlier. Analysts surveyed by Thomson First Call had expected earnings of $1.26 a share for the June quarter.
The company's revenue rose to $1.3 billion from $1.1 billion a year earlier.But assets under management didn't escape the volatility that weighed on stocks during the period. Franklin's assets under management at the end of June stood at $490.1 billion. The number is up significantly from $425.4 billion a year ago, but down slightly from the $491.6 billion recorded at the end of March. Still, the earnings beat sent Franklin's shares up $2.96, or 3.5%, to $87.30 in afternoon trading Thursday. Meanwhile, T. Rowe Price's second-quarter earnings rose to $136 million, or 49 cents a share, from $103 million, or 38 cents share, a year ago. The results beat analysts' forecast for earnings of 46 cents a share. Net revenue rose 23% to $446 million from $364 million. T. Rowe price managed to post asset growth in the quarter, despite the market's wild ride. Assets under management increased to a record $293.7 billion at the end of June, up $24.2 billion from the end of 2005. The number was up $800 million from the end of the first quarter. The company's shares recently jumped $2.23, or 6%, to $39.28.