Legg Mason (NYSE: LM ) reported earnings on Oct. 26. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Sep. 30 (Q2), Legg Mason met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank and GAAP earnings per share increased significantly.
Gross margins dropped, operating margins dropped, net margins increased.
Legg Mason tallied revenue of $640.3 million. The 12 analysts polled by S&P Capital IQ predicted net sales of $635.4 million on the same basis. GAAP reported sales were 4.4% lower than the prior-year quarter's $669.9 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 $0.75. The four earnings estimates compiled by S&P Capital IQ averaged $0.79 per share. GAAP EPS of $0.60 for Q2 were 54% higher than the prior-year quarter's $0.39 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 30.1%, 750 basis points worse than the prior-year quarter. Operating margin was 12.5%, 500 basis points worse than the prior-year quarter. Net margin was 12.6%, 410 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $649.5 million. On the bottom line, the average EPS estimate is $0.78.
Next year's average estimate for revenue is $2.57 billion. The average EPS estimate is $3.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 809 members out of 883 rating the stock outperform, and 74 members rating it underperform. Among 323 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 300 give Legg Mason a green thumbs-up, and 23 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 $27.80.
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