Asset manager Legg Mason, Inc. (
) said late Monday that it swung to a fiscal fourth quarter profit,
and announced plans to cut 10% of its workforce while buying back
$1 billion of its own shares.
The Baltimore-based company reported fiscal fourth quarter net
income of $63.6 million, or 39 cents per share, compared with a net
loss of $330 million, or $2.33 per share, in the year-ago
On average, Wall Street analysts expected a smaller profit of 35
cents per share.
Legg Mason said that AUM, or assets under management, rose 8%
from last year, to $684.5 billion.
Additionally, the company said it would cut 350 jobs, or about
10% of its workforce, in order to slash costs by $130 million to
$150 million per year by the fourth quarter of fiscal 2012.
The company also announced a $1 billion share buyback plan.
Legg Mason shares rose 45 cents, or +1.5%, 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 $29.95. The stock has
technical support in the $25-$26 price area. If the shares can firm
up, we see overhead resistance around the $32-$33 price levels. 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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