Independent financial services firm LPL Financial (NASDAQ: LPLA) will be announcing earnings results this Tuesday afternoon. Here’s what investors should know.
LPL Financial beat analysts’ revenue expectations last quarter, reporting revenues of $5.19 billion, up 35.2% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates 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 17.5% year on year, slowing from the 46.4% 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 will stay the course heading into earnings. LPL Financial rarely misses Wall Street’s revenue estimates.
Looking at LPL Financial’s peers in the investment banking & brokerage segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Goldman Sachs delivered year-on-year revenue growth of 23%, beating analysts’ expectations by 11.5%, and Jefferies reported revenues up 8.5%, topping estimates by 1.1%. Goldman Sachs traded down 1.7% following the results while Jefferies was also down 1.3%.
Read our full analysis of Goldman Sachs’s results here and Jefferies’s results here.
Investors in the investment banking & brokerage segment have had steady hands going into earnings, with share prices up 1.5% on average over the last month. LPL Financial’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $422.38 (compared to the current share price of $315.57).
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