Legg Mason (NYSE: LM ) reported earnings on Feb. 1. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Legg Mason met expectations on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue increased and GAAP earnings per share dropped to a loss.
Gross margins dropped, operating margins increased, net margins dropped.
Legg Mason reported revenue of $673.9 million. The 12 analysts polled by S&P Capital IQ anticipated revenue of $677.6 million on the same basis. GAAP reported sales were 7.5% higher than the prior-year quarter's $627.0 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 $0.70. The six earnings estimates compiled by S&P Capital IQ averaged $0.78 per share. GAAP EPS were -$3.45 for Q3 versus $0.20 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 33.0%, 280 basis points worse than the prior-year quarter. Operating margin was 14.9%, 450 basis points better than the prior-year quarter. Net margin was -67.3%, 7,180 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $644.4 million. On the bottom line, the average EPS estimate is $0.75.
Next year's average estimate for revenue is $2.59 billion. The average EPS estimate is $2.17.
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), 322 give Legg Mason a green thumbs-up, and 21 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 $26.93.
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