Legg Mason (NYSE: LM ) is expected to report Q3 earnings around Jan. 26. 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 grow 7.6% and EPS will increase 325.0%.
The average estimate for revenue is $674.5 million. On the bottom line, the average EPS estimate is $0.85.
Last quarter, Legg Mason booked revenue of $640.3 million. 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.
Last quarter, non-GAAP EPS came in at $0.75. 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 preceding quarter, gross margin was 30.7%, 690 basis points worse than the prior-year quarter. Operating margin was 13.2%, 470 basis points worse than the prior-year quarter. Net margin was 12.6%, 410 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $2.59 billion. The average EPS estimate is $2.81.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 802 members out of 877 rating the stock outperform, and 75 members rating it underperform. Among 343 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 323 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 $27.80.
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