NASDAQ$LPLA

LPL Financial Holdings Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced third quarter 2024 results, reporting increased net income and EPS compared to the previous year.

LPL Financial reported strong Q3 2024 results with net income of $255 million and EPS of $3.39, up 16% year-over-year. The company saw growth in advisory and brokerage assets, driven by organic net new assets and recruited assets. Strategic acquisitions, including Atria Wealth Solutions and The Investment Center, are expected to contribute to future growth.

  • Net income was $255 million, with diluted EPS of $3.39, a 16% increase year-over-year.
  • Adjusted EPS increased 11% year-over-year to $4.16.
  • Total advisory and brokerage assets increased 29% year-over-year to $1.6 trillion.
  • Total organic net new assets were $27 billion, representing 7% annualized growth.

Headline financials

Total Revenue

$3.11B

Previous: $2.52B+23.2%
EPS (adj)

$4.16

Previous: $3.74+11.2%
Capital Expenditures

-$397M

Previous: -$297M-33.5%
Free Cash Flow

-$142M

Previous: -$73.1M-93.7%
Net Income

$255M

Previous: $224M+13.8%
Operating Income

$2.86B

Previous: $2.28B+25.2%
Gross Profit

$3.11B

Previous: $2.52B+23.2%
Cash & Equivalents

$1.47B

Previous: $799M+84.6%
Total Assets

$11.9B

Previous: $9.49B+25.9%
Stock-Based Comp

$21M

Previous: $16.5M+27.3%

Revenue & EPS history

LPL Financial · Revenue · Quarterly

$3.11B

Q3 2024+23.2%vs Q3 2023
Beat estimate in 10 of 15 quarters(67%)
ActualEstimate

Revenue by segment

LPL Financial · $2.52B total across 9 segments · Q3 2023

  • Advisory
    $1.08B+17.1%
  • Client cash
    $361M
  • Trailing
    $332M
  • Sales-based
    $312M
  • Other asset-based
    $225M
  • Service and fee
    $136M+11.4%
  • Transaction
    $50.2M+15.9%
  • Interest
    $40.8M+84.6%
  • Others
    -$14.5M

Forward guidance

LPL Financial is focused on supporting advisors' success through innovative solutions. The company expects the acquisitions of Atria and The Investment Center to enhance value for shareholders. LPL plans to resume share repurchases in Q4 2024.

Tailwinds

  • On track to onboard the retail wealth management business of Prudential during Q4, with estimated run-rate EBITDA increased to $70 million.
  • Tightening 2024 Core G&A outlook to a range of $1,475 million to $1,485 million, demonstrating a focus on efficiency.
  • Acquisition of Atria closed in October 2024, expected to be completed in mid-2025, with estimated run-rate EBITDA increased to $150 million.
  • Announced a definitive agreement to acquire The Investment Center, expected to close and convert in the first half of 2025.
  • Plan to resume share repurchase program in Q4 2024, with an estimated $100 million of repurchases planned.

Headwinds

  • Variable costs associated with supporting strong levels of organic growth.
  • Increasing the Core G&A range by $35 million to $40 million to include costs related to the acquisition of Atria and onboarding of Prudential.
  • Potential settlement with the SEC to resolve the Company's civil investigation of certain elements of the Company’s Anti-Money Laundering compliance program.
  • Difficulties and delays in onboarding the assets of acquired, recruited or transitioned advisors.
  • Changes in interest rates and fees payable by banks participating in the Company's client cash programs.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

+0.6%

Avg return

Earnings day

+3.3%

Avg return

5 days after

+4.1%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+13.7%

Q1 2019

Best reaction

-38.1%

Q4 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-1.9%-2.8%-18.1%
Q4 2025-1.7%+7.2%-17.2%
Q3 2025+11.6%+10.7%+5.2%
Q1 2025+6.3%+13.6%+14.7%
Q4 2024+1.3%-0.0%+2.7%
Q3 2024+6.2%+3.1%+22.4%
Q2 2024-2.5%-2.4%-1.4%
Q1 2024-3.1%-1.1%+2.0%
Q4 2023+5.0%+1.0%+11.3%
Q3 2023+2.4%+3.8%+5.8%
Q2 2023-3.9%-1.3%-0.8%
Q1 2023+4.7%-1.7%-0.9%
Q4 2022-0.3%+4.4%+8.5%
Q3 2022+4.5%+4.3%-6.9%
Q2 2022+4.9%+8.8%+7.5%
Q1 2022-1.3%+0.4%+5.5%
Q4 2021+2.9%+7.6%-10.8%
Q3 2021-4.7%-1.2%-7.1%
Q2 2021+0.5%-2.4%+7.5%
Q1 2021+2.7%+1.6%-3.1%
Q4 2020+8.5%+8.9%+15.7%
Q3 2020+4.1%+7.8%+20.7%
Q2 2020-2.5%-1.3%+1.6%
Q1 2020+0.9%+1.2%+16.2%
Q4 2019-2.2%-1.5%-15.7%
Q3 2019+1.0%+3.2%+16.3%
Q2 2019-0.6%-3.3%-16.3%
Q1 2019+13.7%+14.6%+9.1%
Q4 2018+8.1%+10.8%+10.4%
Q3 2018+5.7%+10.2%+14.0%
Q2 2018+0.6%-3.9%-3.8%
Q1 2018+5.9%+12.8%+14.9%
Q4 2017+5.8%+4.9%+6.4%
Q3 2017-5.8%-6.3%-6.3%
Q2 2017+0.0%-0.8%+0.5%
Q1 2017+6.8%+9.2%+0.8%
Q4 2016+4.4%+4.2%+0.4%
Q3 2016-1.2%+4.5%+30.2%
Q2 2016+8.2%-0.5%+17.4%
Q1 2016-1.5%
Q4 2015-38.1%
Q3 2015+3.4%
Q2 2015-9.0%
Q1 2015-1.7%
Q4 2014+1.6%
Q3 2014-2.7%
Q2 2014-4.3%
Q1 2014-4.3%
Q4 2013-0.3%
Q3 2013-0.3%
Q2 2013+6.5%
Q1 2013+0.2%
Q4 2012-0.1%
Q3 2012+1.7%
Q2 2012-13.2%
Q1 2011-3.3%
Q1 2012+0.2%
Q4 2009+3.5%
Q4 2011+3.5%
Q1 2010+3.5%
Q3 2010+3.5%
Q3 2011+3.5%
Q2 2011-1.8%
Q4 2010-1.8%
Q2 2010-1.8%

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