LPL Financial (LPLA) Q4 Earnings: Taking a Look at Key Metrics Versus Estimates

Core Insights - LPL Financial Holdings Inc. reported $3.51 billion in revenue for Q4 2024, a year-over-year increase of 32.9% and exceeding the Zacks Consensus Estimate of $3.35 billion by 4.85% [1] - The company's EPS for the same period was $4.25, compared to $3.51 a year ago, representing an EPS surprise of 8.42% against the consensus estimate of $3.92 [1] Financial Performance Metrics - Total Advisory and Brokerage Assets reached $1,740.7 billion, below the average estimate of $1,767.07 billion [4] - Brokerage Assets were reported at $783.7 billion, slightly lower than the estimated $794.94 billion [4] - Advisory Assets totaled $957 billion, compared to the average estimate of $972.13 billion [4] - The number of advisors increased to 28,888, surpassing the average estimate of 26,310 [4] Revenue Breakdown - Advisory revenue was $1.60 billion, exceeding the estimated $1.51 billion, marking a 47% increase year-over-year [4] - Commission revenue was reported at $965.46 million, above the estimated $882 million, reflecting a 41.5% year-over-year change [4] - Service and fee revenue was $139.12 million, slightly below the average estimate of $146.89 million, with a year-over-year change of 6.5% [4] - Transaction revenue was $61.54 million, in line with the estimate of $61.50 million, showing a 14.3% year-over-year increase [4] - Asset-based fees revenue was $669.78 million, compared to the average estimate of $682.09 million, with a year-over-year change of 15.3% [4] - Sales-based commission revenue was $525.80 million, exceeding the estimated $461.10 million, representing a 47.7% year-over-year increase [4] - Trailing commission revenue was $439.67 million, slightly above the average estimate of $430.86 million, with a year-over-year change of 34.7% [4] Stock Performance - LPL Financial's shares have returned +10.9% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]