Have you been eager to see how Legg Mason Inc. (LM) performed in fourth-quarter fiscal 2015 in comparison with the market expectations? Let’s quickly scan through the key facts from this Maryland-based investment management company’s earnings release this morning:
An Earnings Beat
Legg Mason came out with adjusted earnings per share of $1.03, beating the Zacks Consensus Estimate of 99 cents. Results were aided by higher investment advisory fees and growth in assets under management (AUM).
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Legg Mason depicted pessimism prior to the earnings release. The Zacks Consensus Estimate declined 2.9% to 99 cents over the last 30 days.
However, Legg Mason has a decent earnings surprise history. Before posting an earnings beat in fiscal Q4, the company delivered positive surprises in the prior three quarters as well. Overall, the company surpassed the Zacks Consensus Estimate by an average of 2.4% in the trailing four quarters.
Revenue Came In Higher Than Expected
Legg Mason posted total revenue of $702.3 million, which came slightly ahead of the Zacks Consensus Estimate of $701 million. Moreover, it compared favorably with the year-ago number of $681.4 million.
Key Developments to Note:
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Legg Mason announced a 25% increase in its quarterly cash dividend to 20 cents per share.
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Adjusted income increased 13.9% year over to $117.9 million in the fiscal fourth quarter.
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Assets under management stood at $702.7 billion as of Mar 31, 2015, slightly up year over year.
What Zacks Rank Says
The estimate revisions that we discussed earlier have driven a Zacks Rank #3 (Hold) for Legg Mason. However, since the latest earnings performance is yet to be reflected in the estimate revisions, the rank is subject to change. While things apparently look favorable, it all depends on what sense the just-released report makes to the analysts.
Check back later for our full write up on this Legg Mason earnings report!
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