Legg Mason Q1 Profit Surges

(RTTNews) - Asset management firm Legg Mason, Inc.'s (LM) fourth- quarter net income surged to $68.9 million, or $0.58 per share from $29.2 million or $0.23 per share in the prior-year quarter, reflecting lower operating expenses.

On an adjusted basis, the company's net earnings were $104 Million, or $0.86 per share .On average, 16 analysts polled by Thomson Reuters expected earnings per share of $0.58 for the quarter.Analysts' estimates typically exclude one-time items.

The prior-year quarter had suffered from real estate related losses of $52.8 million, or $0.27 per share which was absent this year. This quarter, the firm incurred lower operating expenses of $562 million versus $624 million in the year-ago period.

For the fourth-quarter, operating revenues were down 5 percent to $681.4 million from $720.1 million in the prior-year quarter, primarily due to a $33.8 million decrease in performance fees and a reduction in revenue resulting from two fewer days in the quarter. Analysts estimated revenues of $693.55 million for the quarter.