LPL Financial Q4 adjusted EPS beats estimates

Overview

• Wealth management firm's Q4 adjusted EPS rose 23%, beating analyst expectations

• Total advisory and brokerage assets increased 36% yr/yr to $2.4 trillion

• Company completed onboarding and integration of Atria, boosting platform strength

Outlook

• LPL Financial plans 2026 core G&A expenses of $1,775-1,820 mln, excluding Commonwealth Financial Network

• Including Commonwealth expenses, 2026 core G&A expected at $2,155 mln-2,210 mln

• Company expects 90% asset retention and $425 mln run-rate EBITDA from Commonwealth Financial Network

Result Drivers

• ASSET GROWTH - Total advisory and brokerage assets increased 36% yr/yr to $2.4 trillion, driven by strong advisory asset growth

• GROSS PROFIT INCREASE - Gross profit rose 26% yr/yr to $1,542 mln, attributed to asset base expansion and improved operating leverage

• NET NEW ASSETS - Organic net new assets were $23 bln, impacted by onboarding from First Horizon Bank and separation from misaligned OSJs

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 4 "hold" and no "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 $426.00, about 16.1% above its January 28 closing price of $366.90

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release: ID:nGNX7J5XlW

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