Being too optimistic can lead to disappointment. That is precisely the lesson Wall Street learned, when
The company's reported net income of $150.1 million, or $1.03 a share in the three month period ending March 31, up from $117.6 million, or 98 cents a share, in the fourth quarter of 2005. While strong, the net income was below the $1.25 a share that analysts polled by
Legg Mason's assets under management didn't grow as much as many analysts expected. In addition, the company incurred higher-than-expected expenses.
"This earnings miss will disappoint investors and pull into question the earnings power of the company," said Chris Meyer, an analyst at
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