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LPL Financial Holdings Inc. (LPLA) Reports Q3 Earnings: What Key Metrics Have to Say
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For the quarter ended September 2023, LPL Financial Holdings Inc. (LPLA - Free Report) reported revenue of $2.52 billion, up 16.6% over the same period last year. EPS came in at $3.74, compared to $3.13 in the year-ago quarter.
The reported revenue represents a surprise of +0.22% over the Zacks Consensus Estimate of $2.52 billion. With the consensus EPS estimate being $3.59, the EPS surprise was +4.18%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how LPL Financial Holdings Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total Advisory and Brokerage Assets: $1,238.4 billion compared to the $1,252.5 billion average estimate based on four analysts.
Total Advisory and Brokerage Assets - Brokerage Assets: $575.7 billion compared to the $580.94 billion average estimate based on four analysts.
Number of advisors: 22,404 versus the four-analyst average estimate of 22,231.
Net New Assets (NNA)- Net new advisory assets: $22.7 billion versus $20.74 billion estimated by three analysts on average.
Total Net New Assets: $33.2 billion compared to the $30.05 billion average estimate based on three analysts.
Total Advisory and Brokerage Assets - Advisory Assets: $662.7 billion compared to the $676.71 billion average estimate based on three analysts.
Commissions: $643.60 million versus $632.14 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10% change.
Advisory fees: $1.08 billion versus the five-analyst average estimate of $1.07 billion. The reported number represents a year-over-year change of +17.1%.
Transaction and other fees: $50.21 million versus $46.11 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +15.9% change.
Service and fee: $135.65 million versus $126.42 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change.
Revenue- Commission- Sales-based: $311.79 million versus the two-analyst average estimate of $304.60 million.
Revenue- Commission- Trailing: $331.81 million versus the two-analyst average estimate of $333.77 million.
Shares of LPL Financial Holdings Inc. have returned -8.8% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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LPL Financial Holdings Inc. (LPLA) Reports Q3 Earnings: What Key Metrics Have to Say
For the quarter ended September 2023, LPL Financial Holdings Inc. (LPLA - Free Report) reported revenue of $2.52 billion, up 16.6% over the same period last year. EPS came in at $3.74, compared to $3.13 in the year-ago quarter.
The reported revenue represents a surprise of +0.22% over the Zacks Consensus Estimate of $2.52 billion. With the consensus EPS estimate being $3.59, the EPS surprise was +4.18%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how LPL Financial Holdings Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
- Total Advisory and Brokerage Assets: $1,238.4 billion compared to the $1,252.5 billion average estimate based on four analysts.
- Total Advisory and Brokerage Assets - Brokerage Assets: $575.7 billion compared to the $580.94 billion average estimate based on four analysts.
- Number of advisors: 22,404 versus the four-analyst average estimate of 22,231.
- Net New Assets (NNA)- Net new advisory assets: $22.7 billion versus $20.74 billion estimated by three analysts on average.
- Total Net New Assets: $33.2 billion compared to the $30.05 billion average estimate based on three analysts.
- Total Advisory and Brokerage Assets - Advisory Assets: $662.7 billion compared to the $676.71 billion average estimate based on three analysts.
- Commissions: $643.60 million versus $632.14 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +10% change.
- Advisory fees: $1.08 billion versus the five-analyst average estimate of $1.07 billion. The reported number represents a year-over-year change of +17.1%.
- Transaction and other fees: $50.21 million versus $46.11 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +15.9% change.
- Service and fee: $135.65 million versus $126.42 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +11.4% change.
- Revenue- Commission- Sales-based: $311.79 million versus the two-analyst average estimate of $304.60 million.
- Revenue- Commission- Trailing: $331.81 million versus the two-analyst average estimate of $333.77 million.
View all Key Company Metrics for LPL Financial Holdings Inc. here>>>Shares of LPL Financial Holdings Inc. have returned -8.8% over the past month versus the Zacks S&P 500 composite's -3.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.