Stock Monitor: Cannae Holdings Post Earnings Reporting

LONDON, UK / ACCESSWIRE / May 16, 2018 / If you want access to our free earnings report on Legg Mason, Inc. (NYSE: LM), all you need to do is sign up now by clicking the following link www.active-investors.com/registration-sg/?symbol=LM. Legg Mason reported its fourth quarter and fiscal 2018 operating and financial results on April 25, 2018. The money manager outperformed top- and bottom-line expectations. Register today and get access to over 1,000 Free Research Reports by joining our site below:

www.active-investors.com/registration-sg

Active-Investors.com is currently working on the research report for Cannae Holdings, Inc. (NYSE: CNNE), which also belongs to the Financial sector as the Company Legg Mason. Do not miss out and become a member today for free to access this upcoming report at:

www.active-investors.com/registration-sg/?symbol=CNNE

Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Legg Mason most recent news is on our radar and our team decided to put out a fantastic report on the company that is now available for free below:

www.active-investors.com/registration-sg/?symbol=LM

Earnings Highlights and Summary

Legg Mason's operating revenues of $785.1 million were up 9% compared to $723.1 million in the prior year's same quarter, reflecting increases principally due to higher average long-term Asset Under Management (AUM), an increase in non-pass through performance fees of $15.2 million, and an increase in pass through performance fees of $5.4 million. The Company's reported numbers topped analysts' estimates of $759.3 million.

During Q4 FY18, Legg Mason's operating expenses of $618.3 million were up 1% compared to $613.2 million in Q4 FY17. The Company's non-operating expense was $43.1 million in the reported quarter compared to $7.1 million in the prior year's comparable quarter.

For Q4 FY18, Legg Mason recorded operating margin of 21.2% compared to 15.2% in Q4 FY17. The Company's reported quarter operating margin, as adjusted, was 23.8%, compared to 20.6% in the prior year's same quarter.

Legg Mason's net income was $76.3 million, or $0.86 per diluted share, in Q4 FY18 compared to net income of $75.9 million, or $0.76 per diluted share, in Q4 FY17. The Company's reported quarter results included contingent consideration credit adjustments of $0.11 per diluted share; net losses on seed and other investments of $0.09 per diluted share; EnTrustPermal acquisition and transition-related costs of $0.01 per diluted share; and corporate severance costs of $0.01 per diluted share. Legg Mason's Q4 FY17 results included discrete tax credits of $0.15 per diluted share; gains on sales of non-strategic managers of $0.03 per diluted share; Royce MEP non-cash charge of $0.03 per diluted share; and EnTrustPermal acquisition and transition-related costs of $0.01 per diluted share. Legg Mason's earnings beat Wall Street's estimates of $0.70 per share.

For FY18, Legg Mason recorded operating revenues of $3.1 billion, up 9% compared to $2.9 billion in FY17.

Legg Mason reported net income of $352.1 million, or $3.72 per diluted share, for FY18 compared to net income of $227.3 million, or $2.18 per diluted share, for FY17.

Asset Under Management

At March 31, 2018, Legg Mason's AUM were $754.1 billion compared to $767.2 billion at December 31, 2017, resulting from $10.7 billion in liquidity outflows, negative market performance, and other of $3.1 billion, and realizations of $0.5 billion.

At March 31, 2018, fixed income represented 56% of Legg Mason's AUM, while equity represented 27%, alternative represented 9%, and liquidity represented 8%. By geography, 69% of AUM was from clients domiciled in the United States and 31% from non-US domiciled clients.

Legg Mason's average AUM was $766.9 billion during Q1 2018 compared to $759.9 billion in the prior quarter and $718.9 billion in Q4 FY17. Average long-term AUM was $697.1 billion compared to $685.3 billion in the prior quarter and $632.7 billion in Q4 FY17.

Balance Sheet

At March 31, 2018, Legg Mason's cash position was $736.1 million. The Company's total debt, after a $100 million revolver repayment in March 2018, was $2.4 billion and stockholders' equity was $3.9 billion. The ratio of total debt to total capital was 38%, down from 39% in the prior quarter. Seed investments totaled $268.3 million.

In Q4 FY18, Legg Mason did not retire any shares because of the accelerated repurchase in the prior quarter. The Company's Board of Directors declared a quarterly cash dividend on its common stock in the amount of $0.34 per share. The dividend is payable on July 09, 2018, to shareholders of record at the close of business on June 12, 2018.

Stock Performance Snapshot

May 15, 2018 - At Tuesday's closing bell, Legg Mason's stock declined 1.09%, ending the trading session at $38.95.

Volume traded for the day: 1.10 million shares, which was above the 3-month average volume of 804.95 thousand shares.

Stock performance in the last month ? up 1.78%; previous three-month period ? up 1.62%; past six-month period ? up 2.34%; and last twelve-month period ? up 3.07%

After yesterday's close, Legg Mason's market cap was at $3.28 billion.

Price to Earnings (P/E) ratio was at 26.71.

The stock has a dividend yield of 2.88%.

The stock is part of the Financial sector, categorized under the Asset Management industry.

Active-Investors:

Active-Investors (A-I) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and Canadian stocks. A-I has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.

A-I has not been compensated; directly or indirectly; for producing or publishing this document.

PRESS RELEASE PROCEDURES:

The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third-party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@active-investors.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by A-I. A-I is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.

NO WARRANTY

A-I, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. A-I, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, A-I, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

NOT AN OFFERING

This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither A-I nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visithttp://active-investors.com/legal-disclaimer/.

CONTACT

For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:

Email: info@active-investors.com

Phone number: 73 29 92 6381

Office Address: 6, Jalan Kia Peng, Kuala Lumpur, 50450 Kuala Lumpur, Wilayah Persekutuan Kuala Lumpur, Malaysia

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE: Active-Investors