Legg Mason Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Legg Mason, Inc. (NYSE:LM) will unveil its latest earnings on Thursday, October 27, 2011. Legg Mason is a global asset management company that offers investment management and related services to individual and institutional clients.

Legg Mason, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 38 cents per share, a decline of 13.6% 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 45 cents. Between one and three months ago, the average estimate moved up. It has dropped from 47 cents during the last month. Analysts are projecting profit to rise by 1.9% versus last year to $1.60.

Past Earnings Performance: The company topped forecasts last quarter after being in line with estimates the quarter prior. In the first quarter, it reported net income of 40 cents per share versus a mean estimate of 39 cents. Two quarters ago, it reported profit of 45 cents per share.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 0% in revenue from the year-earlier quarter to $674.5 million.

Analyst Ratings: Analysts are bullish on Legg Mason as five analysts rate it as a buy, three rate it as a sell and six rate it as a hold.

A Look Back: In the first quarter, profit rose 25.1% to $60 million (40 cents a share) from $47.9 million (30 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 6.4% to $717.1 million from $674.2 million.

Key Stats:

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

Revenue has risen the past four quarters. Revenue rose 6.3% in the fourth quarter of the last fiscal year from the year earlier, climbed 4.6% in the third quarter of the last fiscal year from the year-ago quarter and 2.3% in the second 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), Goldman Sachs (NYSE:GS), Bank of America (NYSE:BAC), JP Morgan (NYSE:JPM), Citigroup (NYSE:C), 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).

Stock Price Performance: During October 17, 2011 to October 21, 2011, the stock price had risen $2.01 (8.1%) from $24.95 to $26.96. The stock price saw one of its best stretches over the last year between February 10, 2011 and February 18, 2011 when shares rose for seven-straight days, rising 7.8% (+$2.66) 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% (-$3.14) over that span. Shares are down $9.03 (-25.1%) year to date.

(Source: Xignite Financials)

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