LPL Investment Holdings Earnings: Here’s Why Shares are Down Now

LPL Investment Holdings Inc. (NASDAQ:LPLA) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 0.7%.

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LPL Investment Holdings Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 14.29% to $0.64 in the quarter versus EPS of $0.56 in the year-earlier quarter.

Revenue: Rose 8.1% to $974.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: LPL Investment Holdings Inc. reported adjusted EPS income of $0.64 per share. By that measure, the company beat the mean analyst estimate of $0.55. It missed the average revenue estimate of $978.92 million.

Quoting Management: “Our positive financial performance in the first quarter was a direct reflection of the hard work of our advisors to position their clients as market conditions improved,” stated Mark Casady, chairman and CEO of LPL Financial. “Strong advisor productivity, rising markets and the accelerating production of advisors added in the last twelve months supported our revenue growth of 8%. Our results this quarter underscore our ability to improve our profit margins when we experience gains in advisor productivity and manage our expense base.”

Key Stats (on next page)…

Revenue increased 3.24% from $944.24 million in the previous quarter. EPS increased 28% from $0.50 in the previous quarter.

Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.55 to a profit $0.57. For the current year, the average estimate has moved up from a profit of $2.16 to a profit of $2.18 over the last ninety days.

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

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