Asset manager Legg Mason, Inc. (
) on Tuesday posted lower-than-expected first quarter earnings,
sending its shares plunging in premarket trading.
The Baltimore-based company reported fiscal first quarter net
income of $47.9 million, or 30 cents per share, down from $50.1
million, or 35 cents per share, in the year-ago period.
On average, Wall Street analysts expected a slightly higher
profit of 31 cents per share.
LM said that assets under management fell to $645.4 billion from
$684.5 billion last year, citing net outflows of around $23.1
billion. Fixed income outflows amounted to $9.4 billion, while
outflows from money-market funds and other similar funds were $14.4
Stock mutual funds saw inflows of about $700 million, though,
marking the first increase in that unit in more than four
Legg Mason shares fell $1.23, or -4.1%, in premarket trading
The Bottom Line
We had removed LM from our "recommended" list last Sept.15, when
the shares traded at $36.30. The company has a .53% dividend yield,
based on last night's closing stock price of $30.08. The stock has
technical support in the $27 price area. If the shares can firm up,
we see overhead resistance around the $34 price level. We would
remain on the sidelines for now.
Legg Mason, Inc. (
) is not recommended at this time, holding a Dividend.com DARS™
Rating of 3.1 out of 5 stars.
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, as well as a detailed explanation of
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