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LPL Financial (LPLA) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

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LPL Financial Holdings Inc. (LPLA - Free Report) reported $3.51 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 32.9%. EPS of $4.25 for the same period compares to $3.51 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $3.35 billion, representing a surprise of +4.85%. The company delivered an EPS surprise of +8.42%, with the consensus EPS estimate being $3.92.

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: $783.7 billion versus $794.94 billion estimated by four analysts on average.
  • Total Advisory and Brokerage Assets: $1,740.7 billion compared to the $1,767.07 billion average estimate based on four analysts.
  • Total Advisory and Brokerage Assets - Advisory Assets: $957 billion compared to the $972.13 billion average estimate based on four analysts.
  • Number of advisors: 28,888 compared to the 26,310 average estimate based on four analysts.
  • Revenue- Advisory: $1.60 billion versus $1.51 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +47% change.
  • Revenue- Commission: $965.46 million versus the six-analyst average estimate of $882 million. The reported number represents a year-over-year change of +41.5%.
  • Revenue- Service and fee: $139.12 million compared to the $146.89 million average estimate based on five analysts. The reported number represents a change of +6.5% year over year.
  • Revenue- Transaction: $61.54 million compared to the $61.50 million average estimate based on five analysts. The reported number represents a change of +14.3% year over year.
  • Revenue- Asset-based fees: $669.78 million versus the four-analyst average estimate of $682.09 million. The reported number represents a year-over-year change of +15.3%.
  • Revenue- Asset-based - Other asset-based: $290.96 million versus the three-analyst average estimate of $293.56 million.
  • Revenue- Commission- Sales-based: $525.80 million versus $461.10 million estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +47.7% change.
  • Revenue- Commission- Trailing: $439.67 million versus the three-analyst average estimate of $430.86 million. The reported number represents a year-over-year change of +34.7%.
View all Key Company Metrics for LPL Financial here>>>

Shares of LPL Financial have returned +10.9% over the past month versus the Zacks S&P 500 composite's +1.2% change. The stock currently has a Zacks Rank #2 (Buy), indicating that it could outperform the broader market in the near term.

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