Wednesday's Financial Winners & Losers

Legg Mason(LM Quote) tumbled Wednesday, a day after the Baltimore-based asset manager warned of a steep earnings shortfall.

The company expects to earn 96 cents to $1.02 a share in its fiscal second quarter, far shy of the $1.16-a-share Thomson Financial consensus estimate. Revenue is likely to fall 1% from the first quarter. Legg Mason also incurred a $12 million mutual fund distribution fee, which will trim earnings by 4 cents a share. Shares were trading down $17.75, 16.9%, to $87.56.

Midland Company(MLAN Quote) gained after the Amelia, Ohio-based insurer said it expects third-quarter results to beat Wall Street's expectations.

The company said it anticipates profit of 83 cents to 89 cents a share, or 80 cents to 86 cents a share before realized capital gains. This is up from the year-ago earnings of 20 cents a share, which included 11 cents of realized capital gains. Analysts are looking for earnings of 56 cents a share. Shares were trading up $2.86, or 7.15%, to $42.86.

Progressive(PGR Quote) gained after the Mayfield Village, Ohio-based auto insurer posted a 34% rise in third-quarter income.

The company reported earnings of $409.6 million, or 53 cents a share, compared with $305.3 million, or 38 cents a share, a year ago. Wall Street was looking for earnings of 50 cents a share. Net premiums written increased 1% to $3.58 billion, while premiums earned increased 2% to $3.54 billion. Shares gained 59 cents, or 2.4%, to $25.30.