NEW YORK (TheStreet) -- Shares of Legg Mason (LM) - Get Report were sharply lower on heavy trading volume late Friday afternoon after the company reported weaker-than-expected revenue for the 2017 fiscal second quarter.

Before today's market open, the Baltimore-based asset manager posted revenue of $748.4 million, while analysts were looking for $750.2 million. Earnings of 63 cents per diluted share surpassed analysts' estimates of 58 cents per share, according to FactSet.

Assets under management rose 9.1% to $732.9 million year-over-year.

"Legg Mason delivered solid operating results despite a challenging quarter for active managers," CEO Joseph Sullivan said in a statement.

"Scale, diversification and global reach are going to be critically important in an increasingly regulated, low growth and low rate environment," he added.

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More than 2.22 million of the company's shares changed hands so far today vs. its average 30-day volume of 1.25 million shares.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C on the stock.

The primary factors that have impacted the rating are mixed. The company's strongest point has been its very decent return on equity which we feel should persist.

But the team also finds weaknesses including deteriorating net income, poor profit margins and weak operating cash flow.

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

You can view the full analysis from the report here: LM

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