Legg to Split Stock After Profit Increase

Legg Mason announced that its board had approved a three-for-two stock split, payable Sept. 24 to shareholders of record as of Sept. 8. The move came a day after the company reported quarterly earnings that missed analysts’ expectations.

The Baltimore financial services company on Monday reported a 48% profit increase for its fiscal first quarter ended June 30, attributing the earnings hike to an increase in investment advisory fees.

Legg Mason said it had net income of $86.4 million, or $1.14 a share — 9 cents less than the average of analysts’ estimates — in the quarter ended June 30, compared with $58.4 million, or 83 cents a share, a year earlier.

The company’s board also approved a 50% increase in its quarterly dividend, to 15 cents a share, on a split-adjusted basis. The dividend is payable Oct. 25 to shareholders of record as of Oct. 7.

For reprint and licensing requests for this article, click here.
Money Management Executive
MORE FROM FINANCIAL PLANNING