Franklin Resources numbers are electric

Franklin Resources (NYSE: BEN), an asset management company that works under the name Franklin Templeton Investments, came out yesterday with strong numbers. They reported income of $518.3 million, or $2.12 per share diluted, on revenues of $1,685.6 million for the quarter ended December 31, 2007. In the quarter ended September 30, 2007, net income was $436.9 million, or $1.76 per share diluted, on revenues of $1,629.1 million. For the quarter ended December 31, 2006, net income was $426.8 million, or $1.67 per share diluted, on revenues of $1,427.8 million.

Operating income for the quarter ended December 31, 2007 was $635.7 million, as compared to $541.4 million for the prior quarter and $508.1 million for the quarter ended December 31, 2006.

In what many considered a very challenging environment for the asset management industry, they continue to grow their business. The stock has gotten pounded along with the rest of the market, and is over 30% off its' high.

This seems like a great long-term play. Their are many catalysts that should help drive earnings in the coming quarters.

1) A 33.3% increase in its quarterly dividend over the dividend paid the prior quarter and the same quarter last year. The company has increased its annual dividend rate every year since 1981.

2)10 million shares stock buyback

3)The Industrial and Commercial Bank of China, China's largest commercial bank, selected Franklin Templeton Investments to manage its newest Qualified Domestic Institutional Investor fund for domestic Chinese retail and institutional investors.

This may be the biggest driver going forward, as they will get a big chunk of Chinese retail and institutional money.

Aaron Katsman is the lead Portfolio Manager and Managing Director of America Israel Investment Associates, LC. and Senior Editor of IsraelNewsletter.com. DISCLOSURE: Writer has a position and is long BEN. He has no positions in any stock mentioned as of 1/25/08