Legg Mason Earnings: What Investors Should Watch

Legg Mason (NYSE:LM) will report earnings before markets open on Thursday, July 25th. Legg Mason, Inc. is a global asset management company. The Company, through its subsidiaries, provides investment management and related services to institutional and individual clients, company-sponsored mutual funds and other pooled investment vehicles.

Here is your Cheat Sheet to Legg Mason Earnings:

Earnings Expectations: Analysts expect earnings of $0.36 per share on revenues of $655.08 million.

Analyst Trends:

Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.55 to a profit $0.56. For the current year, the average estimate is a profit of $2, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Legg Mason has been performing on an annual basis:

Fiscal Year 2009 2010 2011 2012 2013
Revenue ($) in millions 3,357 2,635 2,784 2,663 2,613
Diluted EPS ($) -13.85 1.32 1.63 1.54 -2.65

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012 Mar. 31, 2013
Revenue ($) in millions 630.69 640.29 673.90 667.76
Diluted EPS ($) -0.07 0.60 -3.45 0.23

Past Performance:
Legg Mason has beat analyst estimates 2 times in the past four quarters. This is not consistent enough to get bullish yet.

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