Earnings Preview: Legg Mason

| About: Legg Mason (LM)
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Legg Mason (NYSE:LM) is expected to report Q3 earnings before market open Wednesday, Oct. 29, with a conference call scheduled for 10:00 am.


Analysts are looking for EPS of 2c on revenue of $1.01B. The consensus range for EPS is (54c) to 96c, while the consensus range for revenue is $979.12M to $1.04B, according to First Call.

Analyst Views

Legg Mason's stock fell to an 11-year low today, as investors worry that market conditions and investor outflows have hurt the company's results more than analysts have predicted, Bloomberg reported. The asset manager has reportedly had to raise $2.78B since November 2007 in order to prepare for potential losses in its money market funds. The funds have been undermined by debt issued by their structured investment vehicles. In spite of its troubles, Legg Mason declared a quarterly dividend of 24c per share today.

Permal Investment Management, the company's hedge fund investment unit, wants to raise $500M in order to buy hedge funds' holdings at low rates, according to a recent report. In September, the New York Post wrote that the company was weighing the possibility of selling itself to private equity firms. Legg Mason denied the report. Banc of America reiterated its Buy rating on Legg Mason last month, since the firm believed that the stock's valuation was compelling.