Legg Mason Inc. reports record quarterly profit

October 18, 1991|By Peter H. Frank

Buoyed by strong investor activity in the stock market, Legg Mason Inc. enjoyed record income and revenues in its second fiscal quarter, the Baltimore-based brokerage firm said yesterday.

The company, which owns Legg Mason Wood Walker Inc., said its earnings increased by more than 25 percent, to $4.6 million, or 47 cents a share fully diluted, in the past three months.

That compared with earnings of $3.7 million, or 39 cents a share, in the same period last year.

Revenues rose to $68.7 million, compared with $64 million in the year-ago period.

Legg Mason's results came as little surprise to analysts, who have expected the brokerage industry as a whole to show a healthy increase in earnings compared with last year's comparable period.

"They should have done well, and they did," said John E. Keefe, an analyst with Lipper Analytical Securities in New York.

But while other firms are comparing figures with a dismal quarter a year ago, Legg Mason's results last year were helped by a $1.8 million one-time gain and strong profits from its investment advisory business, which is less subject to sudden downturns. Mr. Keefe said that helped explain why Legg Mason was not recording the same "rags to riches" earnings some other brokers have racked up.

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