LPL Financial Q1 adjusted EPS beats estimates

Overview

• US wealth manager's Q1 adjusted EPS rose 9% yr/yr, beating analyst expectations

• Gross profit for Q1 increased 25% yr/yr

• Company resumed share repurchases in April, planning $125 mln in Q2 buybacks

Outlook

• Company lowers upper end of 2026 Core G&A outlook to $2,155-2,190 mln

• LPL expects approximately 90% asset retention in Commonwealth Financial Network conversion

• Estimated run-rate EBITDA from Commonwealth deal revised to $410 mln

Result Drivers

• CLIENT ASSET GROWTH - Total client assets increased 30% yr/yr to $2.3 trln, with advisory assets up 42% to $1.4 trln

• ADVISORY MIX SHIFT - Advisory assets as a percentage of total client assets rose to 59.5% from 54.5% a year ago

Company press release: ID:nGNX5MHrmD

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", 3 "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 $398.00, about 20.3% above its April 29 closing price of $330.89

• The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

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