Franklin Resources Inc. BEN reported fourth-quarter fiscal 2021 (ended Sep 30) adjusted earnings of $1.26 per share, which lagged the Zacks Consensus Estimate of 86 cents. Results also compare unfavorably with the earnings of 56 cents per share recorded in the prior-year quarter.The company’s results display revenue growth with support from a solid rise in investment management fees during the quarter. Also, higher assets under management (AUM) was a positive. However, rise in expenses and net outflows were the undermining factors.The adjusted operating income came in at $647.1 million in the reported quarter compared with the prior-year quarter’s $428.9 million.For fiscal 2021, earnings per share were $3.57 compared with the $1.59 recorded in the prior year. Results include certain one-time items.Including certain notable items, net income was $665.7 million or $1.3 per share compared with the $78.9 million or 15 cents per share in the prior-year quarter. For fiscal 2021, net income was $1.8 billion compa*red with the prior year’s $798.9MILLION.On Nov 1, Franklin inked an agreement to acquire Lexington Partners L.P., a domineering secondary private equity and co-investment funds’ global manager. This acquisition move will fortify Franklin’s alternative asset competencies, apart from complementing its current prowess in real estate, private credit, and hedge fund strategies. It comes at a time when investors are increasingly progressively stipulating capital across the huge arena of alternative asset offerings.Quarterly Revenues Increase, Costs RiseFor fiscal 2021, total operating revenues surged 51% year over year to $8.4 billion. The revenue figure also beat the Zacks Consensus Estimate of $8.33 billion.Total operating revenues increased 28% year over year to $2.18 billion in the fiscal fourth quarter on higher investment management, sales and distribution and other fees. The figure surpassed the Zacks Consensus Estimate of $2.12 billion.Investment management fees climbed 33% year over year to $1.7 billion, while other revenues increased 48% to $11.8 million. Additionally, sales and distribution fees were up 11% year over year to $408.1 million. Shareholder servicing fees increased 22% to $55.6 million.Total operating expenses flared up 3% year over year to $1.6 billion. This upside resulted from rise in all components of expenses, including compensation and benefits, general, administrative, amortization of intangible assets and other along with sales, distribution and marketing expenses.As of Sep 30, 2021, total AUM came in at $1.53 trillion, up 8% from $1.42 trillion as of Sep 30, 2019. Notably, the company recorded net new outflows of $13.8 billion during the July-September quarter. Simple monthly average AUM of $1.55 trillion increased 26% year over year.Improved Capital PositionAs of Sep 30, 2021, cash and cash equivalents, along with investments, were $5.9 billion compared with $4.3 billion as of Sep 30, 2021. Furthermore, total stockholders' equity was $11.8 billion compared with $10.9 billion as of Sep 30, 2020.Our ViewpointFranklin’s global footprint is an exceptionally favorable strategic point as its AUM is well diversified. Also, the company’s strategic moves might lend some support to the bottom line. Further, increased volatility amid the coronavirus crisis supported growth in investment-management fees.Currently, Franklin carries a Zacks Rank #4 (Sell).Franklin Resources, Inc. Price, Consensus and EPS Surprise Franklin Resources, Inc. price-consensus-eps-surprise-chart | Franklin Resources, Inc. QuoteYou can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Competitive LandscapeBlackRock, Inc.’s BLK third-quarter 2021 adjusted earnings of $10.95 per share outpaced the Zacks Consensus Estimate of $9.63. The figure reflects a rise of 18.8% from the year-ago quarter’s number.Blackstone’s BX distributable earnings of $1.28 per share comfortably surpassed the Zacks Consensus Estimate of 93 cents for the July-September quarter. The figure reflects a significant rise from 63 cents recorded in the prior-year quarter.SEI Investments Co.’s SEIC earnings of 97 cents per share came in line with the Zacks Consensus Estimate for the September-end quarter. The bottom line reflected 29% growth from the prior-year quarter. Infrastructure Stock Boom to Sweep America A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made. The only question is “Will you get into the right stocks early when their growth potential is greatest?” Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.Download FREE: How to Profit from Trillions on Spending for Infrastructure >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Blackstone Inc. (BX): Free Stock Analysis Report Franklin Resources, Inc. (BEN): Free Stock Analysis Report BlackRock, Inc. (BLK): Free Stock Analysis Report SEI Investments Company (SEIC): Free Stock Analysis Report To read this article on Zacks.com click here.