Both Legg Mason Inc (NYSE:LM) and CME Group Inc (NASDAQ:CME) released the results from their most recently completed quarter this morning. For the fourth fiscal quarter, Legg Mason reported adjusted earnings per share of 86 cents, which far ahead of consensus estimates. However, the firm missed on revenues, posting $681.4 million, compared to consensus estimates of $693.6 million.
CME Group Inc (NASDAQ:CME) reported earnings of 83 cents per share, excluding items, which was in line with consensus, on $777 million in revenue, an increase of 8.2%, which was ahead of consensus estimates at $718.6 million.
With the S&P 500 falling a double-digit percentage in the first half, most equity hedge fund managers struggled to keep their heads above water. The performance of the equity hedge fund sector stands in stark contrast to macro hedge funds, which are enjoying one of the best runs of good performance since the financial crisis. Read More
Breaking down Legg Mason’s results
Legg Mason Inc (NYSE:LM) reported that assets under management were $701.8 billion at the end of the quarter. That’s compared to $664.6 billion in the same quarter a year ago and $679.5 billion at the end of the previous quarter. The company’s profits of $68.9 million or 58 cents per share were up from 23 cents per share or $29.2 million in the same quarter a year ago.
The firm reported adjusted items of 86 cents, an increase from 52 cents per share. Items from the quarter included 6 cents per share in operating expenses and severance. In the same quarter a year ago, the firm reported 27 cents per share in losses related to real estate.
Breaking down CME Group’s earnings results
CME Group Inc (NASDAQ:CME)’s trading volume rose 9.4% to an average of 13.7 million contracts each date. The firm reported a 19% increase in interest rate volume. Reported earnings were 76 cents per share or $266.8 million. CME Group said clearing and transaction fee revenue increased 10%, rising to $652.2 million during the quarter. Revenue from market data and information services increased by 11% to $89.4 million during the quarter.
“Following Federal Reserve comments related to quantitative easing and the target federal funds rate, our Eurodollar futures reached a daily record of 6 million contracts traded on March 19,” Executive Chairman Terry Duffy said in a statement. “Further, market participants have begun to adjust their risk management activities in the short end of the interest rate curve, as evidenced by our 47% growth in Eurodollar volume in the first quarter followed by 73% growth in April.”