Have you been eager to see how Legg Mason Inc. performed in second-quarter fiscal 2017 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 earnings per share of 63 cents, beating the Zacks Consensus Estimate of 58 cents. Results were aided by higher operating revenues and growth in assets under management (AUM).
The reported quarter result includes certain non-recurring charges and a tax benefit.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Legg Mason remained stable prior to the earnings release. The Zacks Consensus Estimate of 58 cents per share has remained unchanged over the last 7 days.
However, Legg Mason does not boast of a decent earnings surprise history. Before posting earnings beat in fiscal Q2, the company delivered positive surprise in only one of the trailing four quarters. Overall, the company lagged the Zacks Consensus Estimate by an average of 59.4% in the trailing four quarters.
Revenue Up Y/Y
Legg Mason posted total revenue of $748.4 million, which compared favorably with the year-ago number of $673.1 million. However, it missed the Zacks Consensus Estimate of $752 million.
Key Developments to Note:
Assets under management stood at $732.9 billion as of Sep 30, 2016, up 9% year over year.
Net income came in at $66.4 million, up 3.3% year over year.
Operating Expenses amounted to $620.7 million, up nearly 15% from year-ago quarter.
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.
(You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.)
Check back later for our full write up on this Legg Mason earnings report!
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Legg Mason (LM) Beats on Fiscal Q2 Earnings, Revenues Rise
Have you been eager to see how Legg Mason Inc. performed in second-quarter fiscal 2017 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 earnings per share of 63 cents, beating the Zacks Consensus Estimate of 58 cents. Results were aided by higher operating revenues and growth in assets under management (AUM).
The reported quarter result includes certain non-recurring charges and a tax benefit.
How Was the Estimate Revision Trend?
You should note that the earnings estimate for Legg Mason remained stable prior to the earnings release. The Zacks Consensus Estimate of 58 cents per share has remained unchanged over the last 7 days.
However, Legg Mason does not boast of a decent earnings surprise history. Before posting earnings beat in fiscal Q2, the company delivered positive surprise in only one of the trailing four quarters. Overall, the company lagged the Zacks Consensus Estimate by an average of 59.4% in the trailing four quarters.
LEGG MASON INC Price and EPS Surprise
LEGG MASON INC Price and EPS Surprise | LEGG MASON INC Quote
Revenue Up Y/Y
Legg Mason posted total revenue of $748.4 million, which compared favorably with the year-ago number of $673.1 million. However, it missed the Zacks Consensus Estimate of $752 million.
Key Developments to Note:
Assets under management stood at $732.9 billion as of Sep 30, 2016, up 9% year over year.
Net income came in at $66.4 million, up 3.3% year over year.
Operating Expenses amounted to $620.7 million, up nearly 15% from year-ago quarter.
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.
(You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.)
Check back later for our full write up on this Legg Mason earnings report!
Confidential from Zacks
Beyond this Tale of the Tape, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>