Legg Mason Inc. Earnings: Increased Profit Helps Beat the Street

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

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

Legg Mason Earnings Cheat Sheet for the First Quarter

Results: Net income for the asset management company rose to $60 million (40 cents per share) vs. $47.9 million (30 cents per share) in the same quarter a year earlier. This marks a rise of 25.2% from the year earlier quarter.

Revenue: Rose 6.4% to $717.1 million from the year earlier quarter.

Actual vs. Wall St. Expectations: LM reported adjusted net income of 73 cents per share. By that measure, the company beat the mean estimate of 39 cents per share. Analysts were expecting revenue of $722.9 million.

Quoting Management: Mark R. Fetting, Chairman and CEO of Legg Mason said, “Overall, we are pleased with Legg Mason’s first fiscal quarter of 2012, we delivered solid results including improved fixed income flows, continued diligence on expense control and successful implementation of a significant phase of our streamlining effort. “Amid continued market uncertainty, our near-term mandate is clear. We will carefully manage our expenses, focus on growing our businesses, bring new products to market, and continue to bring our streamlining initiatives to a successful conclusion. Longer term, we are focused on positioning ourselves for future expansion while managing our capital to deliver shareholder value.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the fourth quarter of the last fiscal year, net income rose 8.5% and in the third quarter of the last fiscal year, the figure rose 37.2%.

Revenue has risen the past four quarters. Revenue increased 6.3% to $713.4 million in the fourth quarter of the last fiscal year. The figure rose 4.6% in the third quarter of the last fiscal year from the year earlier and climbed 2.3% in the second quarter of the last fiscal year from the year-ago quarter.

The company beat estimates last quarter after being in line with expectations in the fourth quarter of the last fiscal year with net income of 45 cents per share.

Competitors to Watch: AllianceBernstein Holding LP (NYSE:AB), Westwood Hldgs. Group, Inc. (NYSE:WHG), Diamond Hill Investment Group, Inc. (NASDAQ:DHIL), Epoch Holding Corp (NASDAQ:EPHC), Morgan Stanley (NYSE:MS), Goldman Sachs (NYSE:GS), JP Morgan (NYSE:JPM), Citigroup (NYSE:C), Bank of America (NYSE:BAC), Pzena Investment Management, Inc. (NYSE:PZN), Artio Global Investors Inc. (NYSE:ART), Sanders Morris Harris Group (NASDAQ:SMHG), The Blackstone Group L.P. (NYSE:BX), and Affiliated Managers Group, Inc. (NYSE:AMG).

Get more Earnings Cheat Sheets with our in depth coverage of earnings season >>

(Source: Xignite Financials)

More from The Cheat Sheet