Legg Mason, Inc. First Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Legg Mason, Inc. (NYSE:LM) will unveil its latest earnings on Thursday, July 28, 2011. Legg Mason Inc. is a global asset management company that offers investment management and related services to individual and institutional clients. BlackRock Earnings Cheat Sheet: Profits Climb By Double Figures Again>>

Legg Mason, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 39 cents per share, a rise of 30% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 46 cents. Between one and three months ago, the average estimate moved down and dropped from 41 cents during the last month. For the year, analysts are projecting profit of $1.90 per share, a rise of 21% from last year.

Past Earnings Performance: The company met estimates last quarter after beating the forecasts in the prior two. In the fourth quarter of the last fiscal year, the company reported net income of 45 cents per share versus a mean estimate of profit of 45 cents per share. In the third quarter of the last fiscal year, the company beat estimates by 2 cents.

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Wall St. Revenue Expectations: On average, analysts predict $722.9 million in revenue this quarter, a rise of 7.2% from the year ago quarter. Analysts are forecasting total revenue of $2.92 billion for the year, a rise of 5% from last year’s revenue of $2.78 billion.

Analyst Ratings: Analysts seem relatively indifferent about Legg Mason with eight of 15 analysts surveyed maintaining a hold rating.

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% while it rose 37.2% in the third quarter of the last fiscal year and 64.6% in the second quarter of the last fiscal year.

Revenue has risen the past four quarters. Revenue increased 6.3% to $713.4 million in 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, climbed 2.3% in the second quarter of the last fiscal year from the year-ago quarter and 10% in the first quarter of the last fiscal year.

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), 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), Citigroup (NYSE:C), Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Goldman Sachs (NYSE:GS), JP Morgan (NYSE:JPM) and Affiliated Managers Group, Inc. (NYSE:AMG).

Stock Price Performance: During April 27, 2011 to July 22, 2011, the stock price had fallen $5.01 (-13.4%) from $37.44 to $32.43. The stock price saw one of its best stretches over the last year between September 7, 2010 and September 20, 2010 when shares rose for 10-straight days, rising 13% (+$3.53) over that span. It saw one of its worst periods between April 27, 2011 and May 6, 2011 when shares fell for eight-straight days, falling 8.4% (-$3.16) over that span. Shares are down $3.69 (-10.2%) year to date.

(Source: Xignite Financials)

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