LPL Financial Q3 adjusted EPS beats estimates as client assets rise

Overview

• US wealth manager's Q3 adjusted EPS rose 15% yr/yr, beating analyst expectations

• Gross profit for Q3 increased 12% yr/yr

• Company repurchased $301 mln in shares during the quarter

Outlook

• Company narrows 2026 Core G&A outlook to $2.14-$2.16 bln, including Commonwealth expenses

• Company expects Commonwealth asset retention at about 83% and run-rate EBITDA of $415 mln

Result Drivers

• ORGANIC GROWTH - Co said strong organic net new assets of $29 bln, representing 5% annualized growth, contributed to results

• ADVISORY ASSETS - Advisory assets increased 16% yr/yr to $1.6 trln, with advisory assets as a percentage of total client assets rising to 60.9%

• CLIENT ASSETS - Total client assets rose 11% yr/yr to $2.6 trln, supporting higher revenue and gross profit

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 15 "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 $400.00, about 26.1% above its October 26 closing price of $317.23

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 11 three months ago

Reuters Recommended Reads

• Oct 27 - Invesco's Q3 operating revenue up 14%, adjusted EPS rises 18%

• Oct 26 - Bank of Hawaii Q3 net income rises on higher net interest income

• Oct 27 - Advent raises $30 billion for latest buyout, mid-market funds

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)