Wall Street analysts expect LPL Financial Holdings Inc. (LPLA) to post quarterly earnings of $4.50 per share in its upcoming report, which indicates a year-over-year increase of 6.9%. Revenues are expected to be $3.61 billion, up 27.5% from the year-ago quarter.
The consensus EPS estimate for the quarter has been revised 5.4% 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.
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 $960.89 million. The estimate indicates a change of +28.7% from the prior-year quarter.
It is projected by analysts that the 'Revenue- Service and fee' will reach $139.93 million. The estimate points to a change of +5.9% from the year-ago quarter.
Based on the collective assessment of analysts, 'Revenue- Asset-based fees' should arrive at $711.71 million. The estimate points to a change of +18.5% from the year-ago quarter.
The consensus estimate for 'Revenue- Advisory' stands at $1.68 billion. The estimate indicates a year-over-year change of +40%.
According to the collective judgment of analysts, 'Revenue- Transaction' should come in at $62.16 million. The estimate suggests a change of +8.6% year over year.
Analysts forecast 'Revenue- Commission- Trailing' to reach $436.23 million. The estimate indicates a change of +20.8% from the prior-year quarter.
Analysts' assessment points toward 'Total Advisory and Brokerage Assets - Brokerage Assets' reaching $821.02 billion. Compared to the current estimate, the company reported $647.9 billion in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Total Advisory and Brokerage Assets' will likely reach $1,816.08 billion. Compared to the present estimate, the company reported $1,440.9 billion in the same quarter last year.
Analysts expect 'Total Advisory and Brokerage Assets - Advisory Assets' to come in at $995.07 billion. The estimate is in contrast to the year-ago figure of $793 billion.
The consensus among analysts is that 'Number of advisors' will reach 29,289. The estimate is in contrast to the year-ago figure of 22,884.
The average prediction of analysts places 'Net New Assets (NNA) - Net new advisory assets' at $33.65 billion. Compared to the current estimate, the company reported $16.2 billion in the same quarter of the previous year.
Analysts predict that the 'Total Net New Assets' will reach $69.17 billion. The estimate compares to the year-ago value of $16.7 billion.
View all Key Company Metrics for LPL Financial here>>>
Shares of LPL Financial have demonstrated returns of +17.7% over the past month compared to the Zacks S&P 500 composite's +0.4% change. 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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