Does the Street Have Legg Mason Figured Out?
Legg Mason (NYS: LM) is expected to report Q1 earnings on July 27. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Legg Mason's revenues will wither -9.7% and EPS will compress -17.5%.
The average estimate for revenue is $647.7 million. On the bottom line, the average EPS estimate is $0.33.
Last quarter, Legg Mason tallied revenue of $648.6 million. 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.
Last quarter, EPS came in at $0.54. 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 preceding quarter, gross margin was 29.4%, 420 basis points worse than the prior-year quarter. Operating margin was 14.5%, 70 basis points worse than the prior-year quarter. Net margin was 11.7%, 200 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $2.61 billion. The average EPS estimate is $1.87.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 819 members out of 893 rating the stock outperform, and 74 members rating it underperform. Among 305 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 280 give Legg Mason a green thumbs-up, and 25 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 $29.85.
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The article Does the Street Have Legg Mason Figured Out? originally appeared on Fool.com.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.