This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Big Fund Firms Post Mixed Results

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 ratcheted down estimates for the quarter, as investment returns and investor inflows were expected to decline.

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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
SYM TRADE IT LAST %CHG
BEN $51.71 0.00%
JNS $17.87 0.00%
TROW $81.69 0.00%
AAPL $131.97 0.44%
FB $80.48 0.00%

Markets

DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs