Tuesday's Financial Winners & Losers

Brown & Brown(BRO Quote) advanced after the Daytona Beach, Fla.-based insurance broker posted a 20% increase in second-quarter profit and beat analyst expectations. The company earned $44.4 million, or 32 cents a share, compared with $37 million, or 27 cents a share, a year ago. Revenue totaled $220.8 million, up 12.7% from a year ago. Wall Street, according to Thomson Financial, was looking for earnings of 29 cents a share. Shares were most recently trading up $3.38, or 12.10%, to $31.32 recently.

PS Business Parks(PSB Quote) gained after announcing that Standard & Poor's will add the Glendale, Calif.-based real estate investment trust to the S&P SmallCap 600. The REIT, which will be added to the index at the close of trading Thursday, will replace Diagnostic Products Corp.(DP Quote). Diagnostic Products is being acquired by Siemens AG in a deal expected to close on or about that date. Shares of PS Business Parks climbed $1.68, or 2.83%, to $61.07.

Legg Mason(LM Quote) slipped after earnings fell short of Wall Street expectations for the asset-management firm's fiscal first quarter. Legg Mason's net income rose 38% to $156 million, or $1.08 a share, up from $112.8 million, or 93 cents a share. Revenue more than doubled to $1.04 billion, driven by the recent acquisitions of Citigroup's(C Quote) asset management unit and Permal Group.

But Wall Street was looking for a better performance from the firm. The analyst consensus estimate had Legg Mason earning $1.13 a share on revenue of $1.08 billion. "This was a very difficult quarter for the markets, and particularly equity markets, and we were not immune to the effects of these market difficulties," said Chairman and Chief Executive Raymond Mason. Sure enough, assets under management at Legg Mason declined by 1.5% to $854.7 billion in the most recent quarter. Shares dropped $6.61, or 7.01%, to $87.72...