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.

Revenue details
 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 details
 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.

Margin details
 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.

Looking ahead
 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.

Investor sentiment
 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.