The upcoming report from LPL Financial Holdings Inc. (LPLA) is expected to reveal quarterly earnings of $4.47 per share, indicating an increase of 7.5% compared to the year-ago period. Analysts forecast revenues of $4.34 billion, representing an increase of 39.5% year over year.
The consensus EPS estimate for the quarter has been revised 1.2% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
Bearing this in mind, let's now explore the average estimates of specific LPL Financial metrics that are commonly monitored and projected by Wall Street analysts.
The consensus among analysts is that 'Revenue- Commission' will reach $1.14 billion. The estimate suggests a change of +41.2% year over year.
The combined assessment of analysts suggests that 'Revenue- Service and fee' will likely reach $168.93 million. The estimate points to a change of +15.9% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Asset-based fees' should arrive at $778.34 million. The estimate indicates a year-over-year change of +24.3%.
Analysts expect 'Revenue- Advisory' to come in at $2.06 billion. The estimate indicates a change of +49.2% from the prior-year quarter.
The consensus estimate for 'Number of advisors' stands at 31,123 . Compared to the present estimate, the company reported 23,686 in the same quarter last year.
According to the collective judgment of analysts, 'Total Advisory and Brokerage Assets - Advisory Assets' should come in at $1284.19 billion. The estimate is in contrast to the year-ago figure of $892.00 billion.
The collective assessment of analysts points to an estimated 'Total Advisory and Brokerage Assets - Brokerage Assets' of $949.53 billion. The estimate is in contrast to the year-ago figure of $700.10 billion.
It is projected by analysts that the 'Total Advisory and Brokerage Assets' will reach $2233.72 billion. The estimate is in contrast to the year-ago figure of $1592.10 billion.
The average prediction of analysts places 'Net New Assets (NNA) - Net new advisory assets' at $31.04 billion. The estimate is in contrast to the year-ago figure of $23.70 billion.
Analysts predict that the 'Total Net New Assets' will reach $33.03 billion. Compared to the current estimate, the company reported $27.50 billion in the same quarter of the previous year.
Analysts' assessment points toward 'Net new advisors' reaching 515 . Compared to the present estimate, the company reported 224 in the same quarter last year.
Analysts forecast 'Net New Assets (NNA) - Net new brokerage assets' to reach $1.99 billion. The estimate is in contrast to the year-ago figure of $3.80 billion.
View all Key Company Metrics for LPL Financial here>>>
Over the past month, LPL Financial shares have recorded returns of +3.1% versus the Zacks S&P 500 composite's +3.8% change. Based on its Zacks Rank #3 (Hold), LPLA will likely exhibit a performance that aligns with the overall market in the upcoming period. 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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