Legg Mason Inc. Earnings: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Legg Mason Inc. (NYSE:LM) reported net income above Wall Street’s expectations for the fourth quarter. Legg Mason is a global asset management company that offers investment management and related services to individual and institutional clients.

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Legg Mason Earnings Cheat Sheet for the Fourth Quarter

Results: Net income for Legg Mason Inc. rose to $76.1 million (54 cents per share) vs. $69 million (45 cents per share) in the same quarter a year earlier. This marks a rise of 10.2% from the year-earlier quarter.

Revenue: Fell 9.1% to $648.6 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Legg Mason Inc. reported adjusted net income of 88 cents per share. By that measure, the company beat the mean estimate of 48 cents per share. Analysts were expecting revenue of $645.3 million.

Key Stats:

Revenue has dropped for three consecutive quarters. In the third quarter, revenue declined 13.2% to $627 million while the figure fell 0.7% in the second quarter from the year earlier.

Last quarter’s profit increase breaks a streak of two consecutive quarters of year-over-year profit decreases. In the third quarter, net income fell 54.3% while the figure dropped in the second quarter.

The company topped expectations last quarter after falling short of forecasts in the third quarter with net income of 20 cents versus a mean estimate of net income of 27 cents per share.

Looking Forward: Next quarter’s results are expected to be more favorable for the company. Over the past sixty days, the average estimate for the first quarter of the next fiscal year has reached 47 cents per share, up from 44 cents. At $1.47 per share, the average estimate for the fiscal year has fallen from $1.50 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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