Independent financial services firm LPL Financial (NASDAQ: LPLA) will be reporting results this Thursday after market hours. Here’s what investors should know.
LPL Financial beat analysts’ revenue expectations last quarter, reporting revenues of $4.93 billion, up 40.4% year on year. It was a strong quarter for the company, with and a beat of analysts’ EPS estimates.
Is LPL Financial a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting LPL Financial’s revenue to grow 35.8% year on year, improving from the 29.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. LPL Financial has a history of exceeding Wall Street’s expectations.
Looking at LPL Financial’s peers in the investment banking & brokerage segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Morgan Stanley delivered year-on-year revenue growth of 16%, beating analysts’ expectations by 4%, and Goldman Sachs reported revenues up 14.4%, topping estimates by 1%. Morgan Stanley traded up 2.2% following the results while Goldman Sachs’s stock price was unchanged.
Read our full analysis of Morgan Stanley’s results here and Goldman Sachs’s results here.
There has been positive sentiment among investors in the investment banking & brokerage segment, with share prices up 12.8% on average over the last month. LPL Financial is up 11.2% during the same time and is heading into earnings with an average analyst price target of $405.14 (compared to the current share price of $333.81).
ONE MORE THING: The $21 AI Application Stock Wall Street Forgot. While Wall Street obsesses over who’s building AI, one company is already using it to print money. And nobody’s paying attention.
AI chip stocks trade at ridiculous valuations. This company processes a trillion consumer signals monthly using AI and trades at a third of the price. The gap won’t last. The institutions will figure it out. You need to see this first. Read the FREE Report Before They Notice.
