LPL Financial beats first-quarter forecasts as shares fall after hours
Updated
Updated · Barron's · Apr 30
LPL Financial beats first-quarter forecasts as shares fall after hours
9 articles · Updated · Barron's · Apr 30
The wealth manager posted adjusted EPS of $5.60 on $4.9 billion revenue, versus FactSet expectations of $5.48 and $4.5 billion, while client assets rose 30% to $2.3 trillion.
Adjusted EPS increased 9% and revenue 35% from a year earlier, helped by strong advisory fee growth; organic net new assets were $21 billion, while recruited assets fell 55% to $17 billion.
LPL, with 32,000 advisers, said Commonwealth integration should finish in the fourth quarter, still expects to retain about 90% of assets, and cut estimated run-rate EBITDA to $410 million from $425 million.
With record earnings but a falling stock, is LPL's acquisition strategy creating more long-term risk than immediate reward?
As an 'arms race' for advisors heats up, can LPL's new AI tools help retain talent fleeing its own acquisitions?