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Compared to Estimates, LPL Financial (LPLA) Q2 Earnings: A Look at Key Metrics
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LPL Financial Holdings Inc. (LPLA - Free Report) reported $2.93 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 18.8%. EPS of $3.88 for the same period compares to $3.94 a year ago.
The reported revenue represents a surprise of +3.78% over the Zacks Consensus Estimate of $2.83 billion. With the consensus EPS estimate being $3.66, the EPS surprise was +6.01%.
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 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 - Brokerage Assets: $668.7 billion versus $667.72 billion estimated by four analysts on average.
Total Advisory and Brokerage Assets: $1,497.8 billion versus $1,492.22 billion estimated by four analysts on average.
Total Advisory and Brokerage Assets - Advisory Assets: $829.1 billion versus $824.48 billion estimated by four analysts on average.
Number of advisors: 23,462 versus the four-analyst average estimate of 23,159.
Revenue- Advisory: $1.29 billion versus the six-analyst average estimate of $1.26 billion. The reported number represents a year-over-year change of +27%.
Revenue- Service and fee: $135 million versus $132.55 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +9.7% change.
Revenue- Transaction: $58.94 million versus the five-analyst average estimate of $55.22 million. The reported number represents a year-over-year change of +25.6%.
Revenue- Commission: $787.05 million versus $727.54 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +26.4% change.
Revenue- Commission- Trailing: $363.98 million compared to the $371.74 million average estimate based on three analysts.
Revenue- Commission- Sales-based: $423.07 million versus the three-analyst average estimate of $390.06 million.
Revenue- Asset-based fees: $601.01 million versus $616.49 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +1.9% change.
Revenue- Asset-based - Other asset-based: $259.53 million versus $254.16 million estimated by two analysts on average.
Shares of LPL Financial have returned -17.4% over the past month versus the Zacks S&P 500 composite's -0.3% 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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Compared to Estimates, LPL Financial (LPLA) Q2 Earnings: A Look at Key Metrics
LPL Financial Holdings Inc. (LPLA - Free Report) reported $2.93 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 18.8%. EPS of $3.88 for the same period compares to $3.94 a year ago.
The reported revenue represents a surprise of +3.78% over the Zacks Consensus Estimate of $2.83 billion. With the consensus EPS estimate being $3.66, the EPS surprise was +6.01%.
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 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 - Brokerage Assets: $668.7 billion versus $667.72 billion estimated by four analysts on average.
- Total Advisory and Brokerage Assets: $1,497.8 billion versus $1,492.22 billion estimated by four analysts on average.
- Total Advisory and Brokerage Assets - Advisory Assets: $829.1 billion versus $824.48 billion estimated by four analysts on average.
- Number of advisors: 23,462 versus the four-analyst average estimate of 23,159.
- Revenue- Advisory: $1.29 billion versus the six-analyst average estimate of $1.26 billion. The reported number represents a year-over-year change of +27%.
- Revenue- Service and fee: $135 million versus $132.55 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +9.7% change.
- Revenue- Transaction: $58.94 million versus the five-analyst average estimate of $55.22 million. The reported number represents a year-over-year change of +25.6%.
- Revenue- Commission: $787.05 million versus $727.54 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +26.4% change.
- Revenue- Commission- Trailing: $363.98 million compared to the $371.74 million average estimate based on three analysts.
- Revenue- Commission- Sales-based: $423.07 million versus the three-analyst average estimate of $390.06 million.
- Revenue- Asset-based fees: $601.01 million versus $616.49 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +1.9% change.
- Revenue- Asset-based - Other asset-based: $259.53 million versus $254.16 million estimated by two analysts on average.
View all Key Company Metrics for LPL Financial here>>>Shares of LPL Financial have returned -17.4% over the past month versus the Zacks S&P 500 composite's -0.3% 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.