SAN DIEGO — LPL Financial (NASDAQ:LPLA) Holdings Inc. (NASDAQ:LPLA) announced its first-quarter financial results, surpassing analyst expectations with an adjusted EPS of $4.21, which was $0.40 higher than the consensus estimate of $3.81. The company's revenue for the quarter reached $2.83 billion, also exceeding the $2.71 billion analyst forecast.
Despite the earnings beat, the firm's adjusted EPS saw a decline of 6% YoY, while net income decreased by 10% to $289 million compared to the first quarter of the previous year. Gross profit, however, experienced a 5% increase YoY to $1.066 billion. The company's adjusted EBITDA dropped by 5% YoY to $541 million.
President and CEO Dan Arnold commented on the results, stating, "Our commitment to our advisors is reflected in their continued successes, which contributed to another quarter of solid business results." He emphasized the company's focus on enhancing its business model and achieving its vision of leadership in the advisor-centered marketplace.
The firm's total advisory and brokerage assets saw significant growth, with a 23% increase YoY to $1.44 trillion. Advisory assets alone grew by 28% to $793 billion, now constituting 55.0% of the total assets, up from 52.8% a year ago. The company also reported organic net new advisory assets of $16 billion, indicating a 9% annualized growth.
LPL Financial's strategic moves included agreements to acquire Atria Wealth Solutions and to transition the wealth management business of Wintrust Investments to LPL's platform. The company also completed the acquisition of Crown Capital's wealth management business.
The Board of Directors declared a dividend of $0.30 per share, payable on June 4, 2024, to stockholders of record as of May 21, 2024.
CFO Matt Audette expressed optimism about the company's future, stating, "We are excited about the opportunities ahead and look forward to continuing to serve our advisors, invest in our industry-leading value proposition, and create long-term shareholder value."
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