LPL Financial Reports First Quarter Profit, Revenue Beats Expectations Author:

SAN DIEGO — LPL Financial (NASDAQ: ) Holdings Inc. (NASDAQ: LPLA ) reported first-quarter financial results, with adjusted earnings of $4.21 per share beating analyst expectations and beating the consensus The forecast of $3.81 was $0.40 higher. The company's revenue for the quarter reached $2.83 billion, also exceeding analysts' forecast of $2.71 billion.

Although profits exceeded expectations, the company's adjusted earnings per share fell 6% from the same period last year, and net profit fell 10% from the first quarter of last year to $289 million. However, gross profit increased 5% year over year to US$1.066 billion. The company's adjusted EBITDA fell 5% year over year to $541 million.

President and CEO Dan Arnold commented on the results, saying, “Our commitment to our advisors is demonstrated by their continued success, which contributed to another quarter of solid business results.” He emphasized that the company's focus is Enhance its business model and realize its vision for leadership in the advisor-focused market.

The company's total advisory and brokerage assets grew significantly, rising 23% year over year to $1.44 trillion. Advisory assets alone grew 28% to $793 billion and now account for 55.0% of total assets, up from 52.8% a year ago. The company also reported organic net new advisory assets of $16 billion, an annualized growth rate of 9%.

LPL Financial's strategic moves include an agreement to acquire Atria Wealth Solutions and the transfer of Wintrust Investments' wealth management business to LPL's platform. The company also completed the acquisition of Crown Capital’s wealth management business.

The Board of Directors has declared a dividend of $0.30 per share, payable on June 4, 2024 to shareholders of record as of May 21, 2024.

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Chief Financial Officer 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 shareholder value.”

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