(RTTNews) - Legg Mason Inc. (LM) reported better-than-expected profit for the first quarter. Meanwhile, revenues declined and missed Wall Street analysts' consensus estimate, negatively impacted by the significant market volatility and related redemption activity primarily related to the COVID-19 pandemic.
The company's Q1 net income was $49.4 million or $0.54 per share compared to $45.4 million or $0.51 per share last year.
Adjusted net income was $65.4 million or $0.71 per share versus $67.0 million or $0.75 per share a year ago.
Operating revenues declined to $666.2 million from the previous year's revenue of $705.4 million.
Analysts polled by Thomson Reuters expected earnings of $0.64 per share on revenue of $677.75 million for the quarter. Analysts' estimate typically exclude certain special items.
Joseph Sullivan, Chairman and CEO of Legg Mason, said, "Legg Mason's quarterly results were negatively impacted by the significant market volatility and related redemption activity primarily related to the COVID-19 pandemic. While average AUM and revenues declined this quarter, we continued to manage our costs well, and I am pleased to announce that we achieved annual run-rate expense savings of $104 million related to the Strategic Restructuring initiative that we launched last year."
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