LPL Investment Holdings Earnings: Here’s Why Investors Like These Results

LPL Investment Holdings Inc. (NASDAQ:LPLA) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 1.58%.

LPL Investment Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 24.49% to $0.61 in the quarter versus EPS of $0.49 in the year-earlier quarter.

Revenue: Rose 12.13% to $1.02 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: LPL Investment Holdings Inc. reported adjusted EPS income of $0.61 per share. By that measure, the company beat the mean analyst estimate of $0.60. It beat the average revenue estimate of $999.14 million.

Quoting Management: “Our second-quarter top-line results mark the strongest quarter in LPL’s history with net revenues surpassing $1 billion,” said Mark Casady, chairman and CEO of LPL Financial. “We continued to build upon our strong momentum from the first quarter, driven by improving business fundamentals including increased advisor productivity, rising asset levels and excellent production retention. Under these strong top-line conditions, we are able to generate more robust earnings growth and margin expansion as we leverage our infrastructure and control our expenses. This resulted in adjusted earnings per share increasing 25% year-over-year to $0.61 per share for the quarter.”

Key Stats (on next page)…

EPS decreased 4.69% from $0.64 in the previous quarter.

Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.54 and has not changed. For the current year, the average estimate has moved up from a profit of $2.26 to a profit of $2.32 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)

More Articles About:   , , , ,  

More from The Cheat Sheet