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LPL Financial Holdings Inc. (LPLA) Reports Q4 Earnings: What Key Metrics Have to Say

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For the quarter ended December 2023, LPL Financial Holdings Inc. (LPLA - Free Report) reported revenue of $2.64 billion, up 13.3% over the same period last year. EPS came in at $3.51, compared to $4.21 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $2.54 billion, representing a surprise of +3.90%. The company delivered an EPS surprise of +5.41%, with the consensus EPS estimate being $3.33.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

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: $1,354.1 billion versus the four-analyst average estimate of $1,327.81 billion.
  • Total Advisory and Brokerage Assets - Brokerage Assets: $618.2 billion versus the four-analyst average estimate of $614.25 billion.
  • Number of advisors: 22,660 compared to the 22,715 average estimate based on four analysts.
  • Net New Assets (NNA)- Net new advisory assets: $4.2 billion versus the three-analyst average estimate of $19.53 billion.
  • Total Net New Assets: $24.7 billion compared to the $30.12 billion average estimate based on three analysts.
  • Total Advisory and Brokerage Assets - Advisory Assets: $735.8 billion compared to the $709.15 billion average estimate based on three analysts.
  • Revenue- Advisory: $1.09 billion versus $1.08 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +20.3% change.
  • Revenue- Commission: $682.41 million compared to the $640.80 million average estimate based on five analysts. The reported number represents a change of +17.2% year over year.
  • Revenue- Service and fee: $130.68 million versus $125.80 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +8.9% change.
  • Revenue- Transaction: $53.86 million versus $52.65 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +15.1% change.
  • Revenue- Commission- Sales-based: $355.96 million versus $316.26 million estimated by two analysts on average.
  • Revenue- Commission- Trailing: $326.45 million versus the two-analyst average estimate of $334.08 million.
View all Key Company Metrics for LPL Financial Holdings Inc. here>>>

Shares of LPL Financial Holdings Inc. have returned +2.8% over the past month versus the Zacks S&P 500 composite's +1.6% 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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