SAN DIEGO – LPL Financial (NASDAQ:) Holdings Inc. (NASDAQ:LPLA) announced its first-quarter financial results, beating analysts’ expectations with adjusted earnings per share of $4.21, beating the consensus estimate of $3.81 by $0.40. The company’s revenue for the quarter reached $2.83 billion, which also exceeded analysts’ estimates of $2.71 billion.
Despite the earnings growth, the company’s adjusted earnings per share fell 6% year-on-year and net income fell 10% to $289 million compared to the previous year’s first quarter. However, gross profit increased 5% YoY to $1.066 billion. The company’s adjusted EBITDA decreased 5% YoY to $541 million.
President and CEO Dan Arnold commented on the results, saying, “Our commitment to our advisors is reflected in their continued success, which contributed to another quarter of strong business results.” He highlighted the company’s commitment to improving its business model and achieving its vision of leadership in the consultant-centric market.
The company’s total advisory and brokerage assets grew significantly, up 23% year over year to $1.44 trillion. Advisory assets alone grew 28% to $793 billion, now accounting for 55.0% of total assets, up from 52.8% a year ago. The company also reported new advisory assets of $16 billion organically, indicating year-over-year growth of 9%.
LPL Financial’s strategic moves included agreements to acquire Atria Wealth Solutions and move Wintrust Investments’ wealth management business to the LPL platform. The company also completed the acquisition of Crown Capital’s asset management business.
The Board of Directors declared a dividend of $0.30 per share payable on June 4, 2024 to shareholders of record on May 21, 2024.
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CFO Matt Audette expressed optimism about the company’s future, saying, “We are excited about the opportunities ahead and look forward to continuing to serve our advisors, invest in our industry-leading value proposition and create long-term value for shareholders.”
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