Wall Street analysts forecast that LPL Financial Holdings Inc. (LPLA) will report quarterly earnings of $4.21 per share in its upcoming release, pointing to a year-over-year increase of 8.5%. It is anticipated that revenues will amount to $3.77 billion, exhibiting an increase of 28.4% compared to the year-ago quarter.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
With that in mind, let's delve into the average projections of some LPL Financial metrics that are commonly tracked and projected by analysts on Wall Street.
The collective assessment of analysts points to an estimated 'Revenue- Commission' of $1.05 billion. The estimate suggests a change of +33.2% year over year.
According to the collective judgment of analysts, 'Revenue- Service and fee' should come in at $149.76 million. The estimate indicates a year-over-year change of +10.9%.
It is projected by analysts that the 'Revenue- Asset-based fees' will reach $712.84 million. The estimate points to a change of +18.6% from the year-ago quarter.
Analysts' assessment points toward 'Revenue- Advisory' reaching $1.72 billion. The estimate suggests a change of +33.6% year over year.
The consensus estimate for 'Revenue- Transaction' stands at $66.54 million. The estimate indicates a change of +12.9% from the prior-year quarter.
The average prediction of analysts places 'Total Advisory and Brokerage Assets - Brokerage Assets' at $851.46 billion. The estimate compares to the year-ago value of $668.70 billion.
The consensus among analysts is that 'Total Advisory and Brokerage Assets' will reach $1893.67 billion. Compared to the present estimate, the company reported $1497.80 billion in the same quarter last year.
Analysts predict that the 'Total Advisory and Brokerage Assets - Advisory Assets' will reach $1042.21 billion. The estimate is in contrast to the year-ago figure of $829.10 billion.
Analysts forecast 'Number of advisors' to reach 29,894 . The estimate compares to the year-ago value of 23,462 .
Analysts expect 'Net New Assets (NNA) - Net new advisory assets' to come in at $22.57 billion. Compared to the present estimate, the company reported $26.80 billion in the same quarter last year.
Based on the collective assessment of analysts, 'Total Net New Assets' should arrive at $26.19 billion. The estimate compares to the year-ago value of $34.00 billion.
The combined assessment of analysts suggests that 'Net New Assets (NNA) - Net new brokerage assets' will likely reach $3.61 billion. The estimate compares to the year-ago value of $7.20 billion.
View all Key Company Metrics for LPL Financial here>>>
Shares of LPL Financial have experienced a change of +4.1% in the past month compared to the +4.9% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), LPLA is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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LPL Financial Holdings Inc. (LPLA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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