Have you been eager to see how Legg Mason Inc. (LM) performed in first-quarter fiscal 2016 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 $1.14, beating the Zacks Consensus Estimate of $1.12. Results were aided by higher investment advisory fees, partially offset by elevated expenses.
How Was the Estimate Revision Trend?
You should note that the earnings estimate revisions for Legg Mason depicted neutral stance prior to the earnings release. The Zacks Consensus Estimate has remained stable over the last 7 days.
However, Legg Mason has a decent earnings surprise history. Before posting earnings beat in fiscal Q1, the company delivered positive surprises in the last four quarters as well. Overall, the company surpassed the Zacks Consensus Estimate by an average of 4.24% in the trailing four quarters.
Revenue Came In Higher Than Expected
Legg Mason posted total revenue of $708.7 million, which surpassed the Zacks Consensus Estimate of $703 million. Moreover, it compared favorably with the year-ago number of $693.9 million.
Key Developments to Note:
-
Adjusted income increased 20.6% year over to $129.3 million in the fiscal first quarter.
-
Assets under management stood at $699.2 billion as of Jun 30, 2015, down 1% year over year.
-
Legg Mason announced plans to acquire 75% stake in Australia-based specialty asset manager, RARE Infrastructure, Ltd., in Jul 2015. Expected to close in the December-end quarter of 2015, the deal will likely be accretive to the company’s earnings in the next calendar 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!
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment