Legg Mason Earnings: Here’s Why Investors Like These Results

Legg Mason Inc. (NYSE:LM) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 2.56%.

Legg Mason Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.68 in the quarter versus EPS of $-0.07 in the year-earlier quarter.

Revenue: Rose 6.3% to $670.4 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Legg Mason Inc. reported adjusted EPS income of $0.68 per share. By that measure, the company beat the mean analyst estimate of $0.36. It beat the average revenue estimate of $655.62 million.

Quoting Management: Joseph A. Sullivan, President and CEO of Legg Mason said, “We were pleased with our first quarter results which included long-term inflows for the first time since September of 2007. This was driven by fixed income inflows as well as significantly reduced equity outflows, due in part to another successful ClearBridge MLP closed-end fund launch. Investment performance was also solid during the quarter, while we managed expenses and continued to repurchase shares in line with our plans. Finally, we continued to make progress on our four key operating priorities, worked with our affiliates to bring investment solutions to our clients and took additional steps to address small, non-core affiliates, further optimizing our portfolio.”

Key Stats (on next page)…

Revenue increased 0.4% from $667.76 million in the previous quarter. EPS increased 195.65% from $0.23 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.55 to a profit $0.54. For the current year, the average estimate has moved down from a profit of $2.18 to a profit of $2 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)