LPL Investment Holdings Inc. Earnings: Quarter Lacks Gusto

LPL Investment Holdings Inc. (NASDAQ:LPLA) reported its results for the first quarter. LPL Investment provides brokerage and investment advisory services through business relationships with financial advisors, registered investment advisors, and financial institutions.

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LPL Investment Holdings Earnings Cheat Sheet for the First Quarter

Results: Net income for LPL Investment Holdings Inc. fell to $41.2 million (37 cents per share) vs. $49 million (43 cents per share) a year earlier. This is a decline of 16% from the year-earlier quarter.

Revenue: Revenue was $901.8 million last quarter.

Actual vs. Wall St. Expectations: LPL Investment Holdings Inc. reported adjusted net income of 56 cents per share. By that measure, the company beat the mean estimate of 54 cents per share. Analysts were expecting revenue of $888.5 million.

Quoting Management: “We are pleased to announce a positive start to 2012 led by record revenue and Adjusted Earnings for the first quarter,” said Mark Casady, LPL Financial chairman and CEO. “This success was driven by the ongoing relationships our advisors maintain with clients. These relationships positioned our advisors for increased productivity as their clients re-engaged in the market. This financial performance was accompanied by a number of key milestones such as the declaration of a special dividend, plans to initiate future payments of a regular quarterly dividend and the successful completion of our debt refinancing, which increased our financial flexibility while maintaining our ability to invest in the growth of the business. Our performance underscores the resiliency and predictability of our business model and is anchored by our singular focus on supporting the needs of our advisors and institutions, which allows us to grow through various market cycles.”

Key Stats:

The company topped expectations last quarter after falling short of forecasts in the fourth quarter of the last fiscal year with net income of 41 cents versus a mean estimate of net income of 46 cents per share.

Looking Forward: Expectations for the company’s next-quarter performance are more favorable than they were a month ago. The average estimate for the second quarter is now at 55 cents per share, up from 55 cents. The average estimate for the fiscal year is $2.23 per share, a rise from $2.14 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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