LPL Financial Q2 adjusted EPS beats estimates

Overview

• LPL Financial Q2 adjusted EPS up 16%, beating analyst expectations, per LSEG data

• Gross profit for Q2 rises 21% yr/yr to $1.304 bln

• Co completed Atria conversion, expects Commonwealth acquisition to close on August 1

Outlook

• Company lowers 2025 Core G&A outlook to $1,720-1,750 mln

• LPL Financial updates 2025 Core G&A range to include costs related to the acquisition of Commonwealth, resulting in an updated range of $1,880-1,920 million

• Company expects to onboard First Horizon in Q3 2025

Result Drivers

• ASSET GROWTH - Total advisory and brokerage assets increased 28% year-over-year to $1.9 trillion

• ORGANIC NET NEW ASSETS - Total organic net new assets were $21 bln, representing 5% annualized growth

• RECRUITED ASSETS DECLINE - Recruited assets were $18 bln, down 24% from a year ago

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and 1 "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 $443.00, about 9.9% above its July 30 closing price of $399.00

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 16 three months ago

Press Release: ID:nGNX8pnSwD