LPL Beats Estimates; Earnings & Sales Rise 7%

The number of affiliated advisors totaled 16,763, up 574 from a year ago and 299 from the prior quarter.

LPL Financial President & CEO Dan Arnold.

LPL Financial beat analysts’ estimates for earnings and revenue in the period ending March 31. Its net income rose slightly from last year to $156 million, while earnings per share jumped 7% to $1.92. 

Total revenues improved 7% from last year to $1.5 billion, with commissions up 9% to about $503 million and advisory revenues (or fees) up 28% to $579 million.

“We grew gross profit, stayed disciplined on expenses, and generated the highest quarter of earnings per share in our history,” according to CFO Matt Audette.

The independent broker-dealer’s total level of assets fell 2% from a year ago  to $670 billion, though fee-based (or advisory) assets, jumped 3% to $322 billion.

Total net new asset inflows in the period were $12.5 billion, representing a 6.5% annualized growth rate. Recruited assets were $8.4 billion for Q1’20 and $36.2 billion for the past four quarters.

The number of affiliated advisors totaled 16,763, up 574 from a year ago and 299 from the prior quarter. 

Total client cash balances were $47.8 billion, up $14.1 billion or 42% sequentially. As a percentage of total assets, cash was 7.1% as of March 31.

“As we factor in the impact of the current climate, we see even bigger opportunity ahead and are well-positioned to support advisors in the marketplace,” CEO Dan Arnold said in a statement.

“Given this, we remain focused on executing our strategy to serve advisors and to create long-term shareholder value,” he explained.

On Wednesday, the IBD said it was buying Lucia Securities, which has some 20 advisors and $1.5 billion of assets.