Free Research Report as Legg Mason’s Operating Revenue Jumped 11%; EPS Soared 216%

Stock Monitor: Affiliated Managers Group Post Earnings Reporting

LONDON, UK / ACCESSWIRE / January 31, 2018 / Active-Investors.com has just released a free earnings report on Legg Mason, Inc. (NYSE: LM). If you want access to this report all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LM. Legg Mason reported its third quarter fiscal 2018 operating and financial results on January 24, 2018. The money manager outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

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Active-Investors.com is currently working on the research report for Affiliated Managers Group, Inc. (NYSE: AMG), which also belongs to the Financial sector as the Company Legg Mason. Do not miss out and become a member today for free to access this upcoming report at:

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Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Legg Mason most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=LM

Earnings Highlights and Summary

For the third fiscal quarter ended December 31, 2017, Legg Mason’s operating revenues gained 11% to $793.1 million compared to $715.2 million in Q3 FY17, reflecting increases principally due to higher average long-term Asset Under Management (AUM), an increase in non-pass through performance fees of $28.3 million, and an increase in pass through performance fees of $7.7 million. The Company’s reported numbers also topped analysts’ expectations of $764.4 million.

For Q3 FY18, Legg Mason’s operating expenses of $820.4 million were up 36% compared to $604.1 million in Q3 FY17. The Company’s non-operating expense was $13.5 million in the reported quarter versus $20.2 million in the prior year’s comparable quarter.

Legg Mason’s operating margin was negative 3.4% in Q3 FY18 compared to positive 15.5% in Q3 FY17, reflecting the impact of the non-cash impairment charge of $195.0 million in the reported quarter. The Company’s operating margin, as adjusted, was 27.2% in Q3 FY18 compared to 23.9% in Q3 FY17.

For Q3 FY18, Legg Mason reported net income of $149.2 million, or $1.58 per diluted share, compared to net income of $51.4 million, or $0.50 per diluted share, in Q3 FY17. The Company’s reported quarter results included one-time non-cash tax benefit of $2.27 per diluted share, related to the new tax law, non-cash intangible asset impairment charge of $1.62 per diluted share, discrete tax expense items of $ $0.08 per diluted share, and EnTrustPermal acquisition and transition-related costs of $0.01 per diluted share. The Company’s prior year same quarter’s results included non-cash impairment charges of $0.25 per diluted share, a credit of $0.10 per diluted share, related to contingent consideration fair value adjustments, gain of $0.03 per diluted share, on the sale of Legg Mason Poland, and EnTrustPermal acquisition and transition-related costs of $0.02 per diluted share.

On an adjusted basis, Legg Mason posted earnings of $1.01 per share, ahead of Wall Street’s estimates of $0.84 per share.

Assets Under Management

Legg Mason’s AU) were $767.2 billion at December 31, 2017, compared to $754.4 billion at September 30, 2017, resulting from $13.5 billion in positive market performance and other, $2.2 billion in long-term inflows and $0.1 billion in acquisitions, partially offset by liquidity outflows of $2.3 billion, negative foreign exchange of $0.4 billion, and realizations of $0.3 billion.

At December 31, 2017, the Company’s fixed income represented 55% of AUM, while equity represented 27%, alternative represented 9% and liquidity represented 9%. On a geographical basis, 69% of Legg Mason’s AUM was from clients domiciled in the United States and 31% from non-US domiciled clients.

Legg Mason’s average AUM during Q3 FY18 was $759.9 billion compared to $750.3 billion in Q2 FY18 and $716.7 billion in Q3 FY17. The Company’s average long-term AUM was $685.3 billion compared to $675.1 billion in the prior quarter and $625.8 billion in the year ago corresponding quarter.

Balance Sheet

At December 31, 2017, Legg Mason’s cash position was $680 million. The Company’s total debt was $2.5 billion, and stockholders’ equity was $3.8 billion at the end of the reported quarter. Legg Mason’s ratio of total debt to total capital was 39%, an increase from 36% in the prior quarter. Seed investments totaled $271 million.

During Q3 FY18, Legg Mason retired $299 million, or 7.5 million shares. The net impact of the share activity reduced the weighted average shares by 1.5 million. These repurchases included 5.6 million shares that the Company repurchased from Shanda in a private transaction funded by a draw on its revolver facility.

Stock Performance Snapshot

January 30, 2018 – At Tuesday’s closing bell, Legg Mason’s stock fell 2.91%, ending the trading session at $42.98.

Volume traded for the day: 2.47 million shares, which was above the 3-month average volume of 877.94 thousand shares.

Stock performance in the last month – up 1.97%; previous three-month period – up 10.15%; past twelve-month period – up 33.94%; and year-to-date – up 2.38%

After yesterday’s close, Legg Mason’s market cap was at $3.99 billion.

Price to Earnings (P/E) ratio was at 11.71.

The stock has a dividend yield of 2.61%.

The stock is part of the Financial sector, categorized under the Asset Management industry.

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