Legg Mason Beats Analyst Estimates on EPS
Legg Mason (NYS: LM) reported earnings yesterday. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 20 (Q4), Legg Mason met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share grew significantly.
Gross margins shrank, operating margins dropped, and net margins expanded.
Legg Mason booked revenue of $648.6 million. The seven analysts polled by S&P Capital IQ expected a top line of $645.3 million on the same basis. GAAP reported sales were 9.1% lower than the prior-year quarter's $713.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.54. The 16 earnings estimates compiled by S&P Capital IQ forecast $0.47 per share. GAAP EPS of $0.54 for Q4 were 20% higher than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 29.4%, 420 basis points worse than the prior-year quarter. Operating margin was 11.5%, 420 basis points worse than the prior-year quarter. Net margin was 11.7%, 200 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $654.2 million. On the bottom line, the average EPS estimate is $0.48.
Next year's average estimate for revenue is $2.68 billion. The average EPS estimate is $2.05.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 833 members rating the stock outperform and 72 members rating it underperform. Among 333 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 313 give Legg Mason a green thumbs-up, and 20 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Legg Mason is hold, with an average price target of $29.38.
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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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