Legg Warns on Third-Quarter Earnings

Legg Mason warned that it is likely to fall short of analyst expectations for its third-quarter earnings. Analysts that Thomson First Call surveyed expected the company to report $1.16 a share; Legg sees that coming in between 96 cents and $1.12 a share.

The company attributed the disappointment to an increase in fixed income assets, which charge lower fees than equity funds, as well as $12 million in unexpected mutual fund distribution fees.

Analysts have expected better performance from the company since it swapped its brokerage business for Citigroup’s asset management arm in December, but in the three quarters since, Legg Mason has continued to disappoint.