Janus, Franklin Beat Estimates - TheStreet

Janus, Franklin Beat Estimates

The two mutual fund managers exceed Wall Street expectations.
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Janus Capital Group's (JNS) first-quarter earnings edged up 0.8% to $35.6 million, or 19 cents per diluted share, compared with $35.3 million, or 17 cents per diluted share, for the same period last year.

The earnings results for the Denver-based asset management company matched expectations from a Thompson Financial poll of research analysts.

The company's average assets under management increased 4.2% to $172.1 billion in the first quarter of 2007, up from $165.1 billion in the fourth quarter of 2006. On March 31, 2007, total assets under management tallied $176.2 billion.

Janus said $3.9 billion of the increase in assets under management came from market appreciation and fund performance, while clients added another $3.1 billion to long-term stock and bond accounts and $1.5 billion to money market funds.

"We're encouraged that the marketplace seems to be responding to our continued strong investment performance," Janus CEO Gary Black said.

Revenues for the company's investment management division grew $6.7 million to $247.9 million in the year's first quarter, mainly as a result of higher average assets under management.

Franklin Resources

(BEN) - Get Report

also beat estimates as its earnings more than doubled in its fiscal second quarter compared to the same quarter a year ago.

The company's net income climbed to $440.9 million, or $1.73 per diluted share, compared with $196.5 million, or 74 cents per share diluted share, for the second quarter of 2006. During the quarter, the Franklin Resources took several charges that reduced earnings, including $111.6 million in income taxes on foreign profits.

Second-quarter earnings this year exceeded the expectations of Wall Street analysts, who, according to Thomson, were looking for $414.9 million in net income, or $1.63 per diluted share.

Franklin Resources says it had $576 billion in assets under management at the end of the second quarter, compared with $552.9 billion at the close of the first quarter. Equities represented 60% of assets under management and fixed income comprised 21%, with another 18% in hybrid accounts.