LPLA Earnings Prediction
The chart below shows how LPLA performed 10 days before and after its earnings report, based on data from the past quarters. Typically, LPLA sees a -1.30% change in stock price 10 days leading up to the earnings, and a +0.60% change 10 days following the report. On the earnings day itself, the stock moves by +0.49%. This data can give you a slight idea of what to expect for the next quarter's release.
LPLA Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
3.48B
32.84%
12.95%
Gross Margin
--
--
--
Operating Margin
13.24%
-2.79%
-6.76%
Net Margin
7.79%
-6.26%
-6.03%
EPS
3.59
25.52%
5.90%
No Data Available
LPLA Earnings Analysis
LPL Financial Holdings Inc Corporation (LPLA.O) Earnings Conference Call
Positive
Organic Asset Growth Achievement: Industry leading organic asset growth of 10% achieved in 2024, with record organic net new assets of $68 billion in Q4, representing a 17% annualized growth rate.
Strong Earnings Performance: Record adjusted earnings per share of $16.51 for the full year, with Q4 adjusted EPS at $4.25, reflecting strong financial performance.
Record Total Assets Growth: Total assets reached a new high of $1.7 trillion, up 9% from Q3, driven by both organic growth and the acquisition of Atria, which added $88 billion in Q4.
Record Recruited Assets: Record recruited assets of $79 billion in Q4, bringing total recruited assets for the year to $149 billion, exceeding previous records.
Shareholder Capital Return: Share repurchases of $100 million initiated in Q4, with plans for an additional $100 million in Q1, demonstrating commitment to returning capital to shareholders.
Negative
Service Revenue Decline: Total service and fee revenue decreased by $7 million from Q3 to $139 million in Q4, attributed to lower conference revenue and IRAPs, indicating a decline in revenue-generating activities.
G&A Expense Growth: Core general and administrative expenses (G&A) grew by approximately 8% for the full year, with expectations for 2025 core G&A to be in the range of $1.73 billion to $1.78 billion, reflecting a significant increase in operational costs post-acquisition of Atria and Prudential.
Rising Interest Expense: Interest expense rose by $14 million sequentially to $82 million in Q4, driven by higher revolver balances following the Atria transaction, indicating increased financial burden due to debt.
Promotional Expense Reduction: Promotional expenses decreased by $3 million from Q3 to $173 million in Q4, but are expected to decrease further to approximately $160 million in Q1, suggesting ongoing cost-cutting measures amid revenue pressures.
Payout Rate Increase: The payout rate increased to 87.8% in Q4, up 30 basis points from Q3, indicating higher costs associated with advisor compensation that could impact overall profitability.
LPLA FAQs
How does LPLA typically perform around its earnings report dates?
Is LPL Financial Holdings Inc (LPLA) Q4 2024 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
LPLA Earning Call Sentiment
Earnings call transcript: LPL Financial beats Q4 2024 earnings expectations
LPLA.O
-1.01%Positive
The earnings call reveals strong financial performance with record asset growth and positive EPS, alongside strategic acquisitions and share repurchase plans. Despite minor risks in integration and market volatility, the market strategy and shareholder return plan are robust. Positive analyst sentiment and optimistic guidance further support a positive outlook for the stock price in the near term.
