Loews Corp (L), Franklin’s (BEN) quarterly profits surge

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Loews Corp (L), Franklin’s (BEN) quarterly profits surge

 Loews Corp (L), Franklin’s (BEN) quarterly profits surge
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  • Loews Corporation (NYSE: L) reported a net income of US$220 million in Q3, FY21.

  • Franklin Resources, Inc’s (NYSE: BEN) operating revenue rose 28% YoY in Q4, FY21.

  • For full fiscal 2021, Franklin’s operating revenue rose by 51% YoY to US$8.42 billion.

Stocks of Loews Corporation (NYSE: L) and Franklin Resources, Inc. (NYSE: BEN) gained traction after reporting their quarterly earnings before the opening bell on Monday. The former traded flat, while the latter was up more than 5% in premarket trading.

The Loews stock was down 0.18% to US$55.97, while BEN traded at US$33.13, up 5.21%, at around 9:24 am ET from their previous closing prices.

Here are the earnings highlights of the companies.

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Loews Corporation (NYSE: L)

Loews Corporation is a multinational company based in New York. It has three subsidiaries: CNA Financial Corporation, Loews Hotels Holding Corporation, and Boardwalk Pipeline Partners, LP.

The company’s total revenue came in at US$3.37 billion in Q3, FY21, compared to US$3.46 billion in the year-ago quarter.

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Segment-wise revenue:

CNA Financial revenue was US$2.95 billion compared to US$2.84 billion in Q3, FY20.  

Boardwalk Pipeline revenue was US$307 million versus US$289 million in Q3, FY20.

Loews Hotels & Co revenue was US$134 million against US$60 million in Q3, FY20.

Loews’ net income was US$220 million, or US$0.85 per diluted share, compared to US$139 million, or US$0.50 per diluted share, in Q3, FY20.

Its market cap is US$14.42 billion, and the P/E ratio is 9.7. Its EPS is US$5.78. The 52-week highest and lowest stock prices were US$59.39 and US$32.75, respectively. Its trading volume was 572,953 on October 29.

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Earnings highlights: Loews Corporation (L) and Franklin Resources, Inc. (BEN)


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Franklin Resources, Inc. (NYSE: BEN)

Franklin Resources is a holding company based in New York. It provides investment management services to retail and institutional investors. It reported preliminary results on Monday while announcing to acquire Lexington Partners for US$1.75 billion in a cash deal.

The acquisition will help Franklin Resources to expand its business into private equity.

Franklin’s operating revenue was US$2.18 billion in Q4, FY21, up 28% from US$1.70 billion in the same quarter of the previous year. Its operating income was US$531.5 million, representing an increase of 413% YoY.

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The company's net income surged 744% YoY to US$665.7 million. Its diluted earnings per share came in at US$1.30 apiece, compared to US$0.15 per diluted share in the quarter ended on September 30, 2020. For the full fiscal 2021, the company's operating revenue surged 51% YoY to US$8.42 billion, while its net income surged 129% YoY to US$1.83 billion.

Its market cap is US$15.83 billion, the P/E ratio is 13.01, and the forward P/E one year is 9.46. Its EPS is US$2.42. The stock saw the highest price of US$35.94 and the lowest price of US$17.97 in the last 52 weeks. Its share volume on October 29 was 5,941,442.

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Both the stocks witnessed significant gains in recent quarters. The Loews stock rose 26.28% YTD, while BEN stock gained 29.38% YTD, suggesting sustained growth. However, investors should assess the companies and the market risks carefully before investing in stocks.


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