Legg Mason Q1 Profit Beats Estimates

Legg Mason Inc LM reported better-than-expected earnings for the first quarter. The Baltimore, Maryland-based company reported quarterly earnings of $83 million, compared to $69 million, in the year-ago period. On a per-share basis, the company's earnings climbed to $0.73 from $0.58. Excluding certain items, Legg Mason's earnings surged to $1.03 per share from $0.58 per share. Its operating revenue climbed 3.1 percent to $702.3 million. However, analysts were estimating earnings of $0.67 per share on revenue of $697.4 million. Revenue from separate accounts fees climbed 3.6 percent in the quarter, while funds revenue rose 2.1 percent. At the end of the quarter, its assets under management climbed to $702.7 billion, compared to $701.8 billion, as of March 31, 2014.. Its operating expenses rose 2 percent year-over-year to $573.4 million. Joseph A. Sullivan, Chairman and CEO of Legg Mason said, "Legg Mason reported another quarter of solid operating performance despite a challenging environment for active managers. Long-term inflows of $6.2 billion were driven by positive flows at Western, Brandywine, ClearBridge and Martin Currie. We continued to integrate and commercialize the strategies of QS Investors and Martin Currie, bringing their new capabilities and products to our clients." Legg Mason shares rose 1.14 percent to $53.25 in pre-market trading.