Being too optimistic can lead to disappointment. That is precisely the lesson Wall Street learned, when Legg Mason's fiscal fourth quarterly earnings, while up 28%, failed to meet analysts' expectations, The Wall Street Journal reports.

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 Thomson Financial projected.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.