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 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.