Asset manager Legg Mason, Inc. (LM) on Friday posted disappointing fourth quarter earnings results, as its bottom line was slammed by a big-write down on assets acquired back in 2005.
The Baltimore-based company reported a fourth quarter net loss of $453.9 million, or -$3.45 per share, compared with net income of $28.1 million, or 20 cents per share, in the year-ago period.
Revenue rose 7.5% from last year to $673.9 million.
On average, Wall Street analysts expected a smaller loss of -$3.23 per share, on larger revenue of $677 million.
LM also disclosed that total assets under management fell to $648.9 billion at the end of 2012, down from $650.7 billion at end of the third quarter.
Legg Mason shares fell 49 cents, or -1.8%, in premarket trading Friday. The stock has risen about 6% in the past year.
The Bottom Line
Shares of LM currently offer a 1.59% dividend yield, based on Thursday’s closing price of $27.65 and the company’s annualized dividend payout of 44 cents per share.
Legg Mason, Inc. (LM) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.0 out of 5 stars.
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