UPDATE: Legg Mason Posts Upbeat Q3 Earnings

Legg Mason Inc. (NYSE: LM) reported better-than-expected earnings for its third quarter.

The company's board also announced a new share-buyback plan for up to $1 billion.

The Baltimore, Maryland-based company reported quarterly earnings of $77 million, compared to $81.7 million. On a per-share basis, the company's earnings came in unchanged at $0.67 per share. Adjusted income for the quarter slipped to $0.98 per diluted share, from $1.03 per diluted share, in the year-ago quarter.

Its operating revenue fell to $719 million from $720.1 million. However, analysts were estimating earnings of $0.66 per share on revenue of $714 million.

Operating income slipped 8.4% to $119.4 million.

As of December 31, 2014, assets under management rose to $709.1 billion, versus $679.5 billion as of December 31, 2013.

At December 31, 2014, the company's cash position was $665 million.

Joseph A. Sullivan, Chairman and CEO of Legg Mason said, "I am pleased with another quarter of continued momentum for Legg Mason. The Company delivered long term inflows of $8.8 billion, led by nearly $10 billion in fixed income inflows partially offset by $1 billion in outflows from equity products. The strength of fixed income flows for the period reinforces our belief in a significant, long term opportunity for Legg Mason, as we enjoy a wide breadth of active investment capabilities with strong performance that address the needs of our clients globally.”

Legg Mason shares gained 1.08% to close at $54.08 yesterday.