LPL Financial Q3 adjusted EPS beats estimates as client assets rise

LPL Financial Holdings

Yesterday 20:14

Overview
US wealth manager's Q3 adjusted EPS rose 15% yr/yr, beating analyst expectations
Gross profit for Q3 increased 12% yr/yr
Company repurchased $301 mln in shares during the quarter

Outlook
Company narrows 2026 Core G&A outlook to $2.14-$2.16 bln, including Commonwealth expenses
Company expects Commonwealth asset retention at about 83% and run-rate EBITDA of $415 mln

Result Drivers
ORGANIC GROWTH - Co said strong organic net new assets of $29 bln, representing 5% annualized growth, contributed to results
ADVISORY ASSETS - Advisory assets increased 16% yr/yr to $1.6 trln, with advisory assets as a percentage of total client assets rising to 60.9%
CLIENT ASSETS - Total client assets rose 11% yr/yr to $2.6 trln, supporting higher revenue and gross profit

Company press release: ID:nGNX3PGfV5

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Adjusted EPS
Beat
$5.97
$5.74 (16 Analysts)
Q3 EPS
 
$4.52
 
Q3 Net Income
 
$357 mln
 
Q3 EBITDA
 
$415 mln
 
Q3 Gross Profit
 
$1.66 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment banking & brokerage services peer group is "buy"
Wall Street's median 12-month price target for LPL Financial Holdings Inc. is $400.00, about 26.1% above its October 26 closing price of $317.23
The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads
Oct 27 - Invesco's Q3 operating revenue up 14%, adjusted EPS rises 18%
Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income
Oct 27 - Advent raises $30 billion for latest buyout, mid-market funds

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)