Unveiling LPL Financial (LPLA) Q3 Outlook: Wall Street Estimates for Key Metrics

Core Viewpoint - LPL Financial Holdings Inc. (LPLA) is expected to report quarterly earnings of $3.69 per share, a decline of 1.3% year-over-year, while revenues are forecasted to increase by 19.2% to $3.01 billion [1] Earnings Estimates - The consensus EPS estimate has been revised downward by 3.2% over the past 30 days, indicating a collective reassessment by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions, with empirical studies showing a strong correlation between earnings estimate revisions and short-term stock performance [3] Revenue Projections - Analysts estimate 'Revenue- Advisory' at $1.35 billion, reflecting a year-over-year increase of 24.7% [5] - 'Revenue- Commission' is projected at $798.35 million, indicating a 24% increase from the prior year [5] - 'Revenue- Service and fee' is expected to reach $145.61 million, a 7.3% increase year-over-year [5] - 'Revenue- Transaction' is forecasted at $59.13 million, suggesting a 17.8% increase [6] - 'Revenue- Asset-based fees' is estimated at $629.73 million, reflecting a 7.6% increase [6] Asset Management Metrics - Total Advisory and Brokerage Assets are projected to reach $1,589.11 billion, up from $1,238.4 billion year-over-year [7] - Total Advisory and Brokerage Assets - Brokerage Assets are expected to be $712.08 billion, compared to $575.7 billion last year [6] Advisor and Asset Growth - The consensus for the 'Number of advisors' stands at 25,029, up from 22,404 in the same quarter last year [8] - 'Net New Assets (NNA) - Net new advisory assets' is expected to reach $27.06 billion, compared to $22.7 billion a year ago [8] - Total Net New Assets are projected at $33.70 billion, slightly up from $33.2 billion last year [9] - 'Net New Assets (NNA) - Net New Brokerage Assets' is expected to be $6.65 billion, down from $10.5 billion year-over-year [9] Stock Performance - Shares of LPL Financial have increased by 13.6% in the past month, outperforming the Zacks S&P 500 composite, which rose by 1.7% [9]