ClearBridge Large Cap Growth ESG ETF 2025 Q2 Earnings Net Income Plummets 93.4%
Saturday, May 3, 2025 1:17 am ET
18min read ClearBridge Large Cap Growth ESG ETF (LRGE) reported its fiscal 2025 Q2 earnings on May 02nd, 2025. Despite a 13.0% increase in EPS to $0.26, the company faced a significant 93.4% drop in net income, declining to $11.60 million from $175.30 million in the previous year. This stark contrast in performance highlights the complexities affecting LRGE's financial results. The guidance remains unchanged, with management anticipating stable revenue and EPS figures for the fiscal year. They remain focused on leveraging growth opportunities in the technology sector while navigating potential market volatility to achieve sustainable growth in line with their ESG commitments.
Revenue
The total revenue for clearbridge large Cap Growth ESG ETF fell by 1.9% to $2.10 billion in 2025 Q2, compared to $2.14 billion in 2024 Q2. Investment management fees contributed significantly with $1.67 billion, followed by sales and distribution fees, which accounted for $364.90 million. Shareholder servicing fees added $61.90 million, while other sources contributed $11 million. The total operating revenue summed up to $2.11 billion.
Earnings/Net Income
ClearBridge Large Cap Growth ESG ETF's EPS improved by 13.0% to $0.26 in 2025 Q2 from $0.23 in 2024 Q2, showcasing continued growth. However, the net income declined sharply to $11.60 million, a significant drop of 93.4% from $175.30 million in the previous year. The increase in EPS signals operational efficiency despite the net income plunge.
Post Earnings Price Action Review
The ClearBridge Large Cap Growth ESG ETF (LRGE) aims for long-term capital appreciation by investing in large-cap growth companies with positive ESG characteristics. Earnings report metrics such as revenue, net income, and EPS can have complex impacts on LRGE's stock price, influenced by market conditions, company performance, and investor sentiment. While positive revenue growth often signals increased demand, boosting stock prices, net income growth reflects profitability, potentially leading to higher valuations. EPS growth indicates per-share profitability, positively impacting stock prices if perceived as sustainable. Nonetheless, stock price reactions are not always immediate or direct, as they can be affected by external factors like geopolitical risks or interest rate fluctuations. In conclusion, although positive earnings metrics may elevate LRGE's stock price, the actual impact depends on prevailing market conditions and investor perceptions at the time of the earnings release.
CEO Commentary
Jane Trust, CEO, emphasized the robust performance of the ClearBridge Large Cap Growth ESG ETF, driven by growth in technology and consumer discretionary sectors. She highlighted the strategic focus on large-cap companies with high earnings growth potential, positioning the ETF well despite challenging market conditions. Trust underscored the importance of ESG integration in investment decisions, which she believes will continue to enhance long-term shareholder value. Her optimistic tone reflects confidence in the fund's strategy and commitment to ESG principles.
Guidance
ClearBridge Large Cap Growth ESG ETF expects to maintain its revenue target of approximately $2.1 billion for the fiscal year. Management anticipates an EPS of $0.26, reflecting strategic investments and strong market positioning. Looking forward, leadership remains focused on leveraging technology sector growth while navigating market volatility, aiming for sustainable growth and value creation aligned with ESG commitments.
Additional News
Recently, Franklin Templeton announced the reorganization of ClearBridge All Cap Growth ESG ETF (CACG) into ClearBridge Large Cap Growth ESG ETF (LRGE), indicating strategic changes within the fund structure. Additionally, there have been discussions about a potential fund name change to ClearBridge Large Cap Growth Select ETF, which may include shifts in ESG focus. Meanwhile, Morningstar's analysis highlighted LRGE's performance objectives and investment process, emphasizing the importance of sensible and repeatable strategies in portfolio construction. These developments reflect ongoing strategic maneuvers within the organization, aimed at enhancing fund performance and aligning with investor interests.
Revenue
The total revenue for clearbridge large Cap Growth ESG ETF fell by 1.9% to $2.10 billion in 2025 Q2, compared to $2.14 billion in 2024 Q2. Investment management fees contributed significantly with $1.67 billion, followed by sales and distribution fees, which accounted for $364.90 million. Shareholder servicing fees added $61.90 million, while other sources contributed $11 million. The total operating revenue summed up to $2.11 billion.
Earnings/Net Income
ClearBridge Large Cap Growth ESG ETF's EPS improved by 13.0% to $0.26 in 2025 Q2 from $0.23 in 2024 Q2, showcasing continued growth. However, the net income declined sharply to $11.60 million, a significant drop of 93.4% from $175.30 million in the previous year. The increase in EPS signals operational efficiency despite the net income plunge.
Post Earnings Price Action Review
The ClearBridge Large Cap Growth ESG ETF (LRGE) aims for long-term capital appreciation by investing in large-cap growth companies with positive ESG characteristics. Earnings report metrics such as revenue, net income, and EPS can have complex impacts on LRGE's stock price, influenced by market conditions, company performance, and investor sentiment. While positive revenue growth often signals increased demand, boosting stock prices, net income growth reflects profitability, potentially leading to higher valuations. EPS growth indicates per-share profitability, positively impacting stock prices if perceived as sustainable. Nonetheless, stock price reactions are not always immediate or direct, as they can be affected by external factors like geopolitical risks or interest rate fluctuations. In conclusion, although positive earnings metrics may elevate LRGE's stock price, the actual impact depends on prevailing market conditions and investor perceptions at the time of the earnings release.
CEO Commentary
Jane Trust, CEO, emphasized the robust performance of the ClearBridge Large Cap Growth ESG ETF, driven by growth in technology and consumer discretionary sectors. She highlighted the strategic focus on large-cap companies with high earnings growth potential, positioning the ETF well despite challenging market conditions. Trust underscored the importance of ESG integration in investment decisions, which she believes will continue to enhance long-term shareholder value. Her optimistic tone reflects confidence in the fund's strategy and commitment to ESG principles.
Guidance
ClearBridge Large Cap Growth ESG ETF expects to maintain its revenue target of approximately $2.1 billion for the fiscal year. Management anticipates an EPS of $0.26, reflecting strategic investments and strong market positioning. Looking forward, leadership remains focused on leveraging technology sector growth while navigating market volatility, aiming for sustainable growth and value creation aligned with ESG commitments.
Additional News
Recently, Franklin Templeton announced the reorganization of ClearBridge All Cap Growth ESG ETF (CACG) into ClearBridge Large Cap Growth ESG ETF (LRGE), indicating strategic changes within the fund structure. Additionally, there have been discussions about a potential fund name change to ClearBridge Large Cap Growth Select ETF, which may include shifts in ESG focus. Meanwhile, Morningstar's analysis highlighted LRGE's performance objectives and investment process, emphasizing the importance of sensible and repeatable strategies in portfolio construction. These developments reflect ongoing strategic maneuvers within the organization, aimed at enhancing fund performance and aligning with investor interests.
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