Here's What Key Metrics Tell Us About LPL Financial Holdings Inc. (LPLA) Q4 Earnings

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LPL Financial Holdings Inc. (LPLA) reported $2.33 billion in revenue for the quarter ended December 2022, representing a year-over-year increase of 11.4%. EPS of $4.21 for the same period compares to $1.63 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $2.28 billion, representing a surprise of +2.31%. The company delivered an EPS surprise of +5.25%, with the consensus EPS estimate being $4.00.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how LPL Financial Holdings Inc. performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Total Advisory and Brokerage Assets: $1110.8 billion versus $1078.7 billion estimated by three analysts on average.

  • Number of advisors [#]: 21275 versus 21236.33 estimated by three analysts on average.

  • Total Advisory and Brokerage Assets-Brokerage Assets: $527.7 billion versus the three-analyst average estimate of $511 billion.

  • Transaction and other fees: $46.79 million versus $43.46 million estimated by six analysts on average. Compared to the year-ago quarter, this number represents a -68.7% change.

  • Commissions: $582.28 million versus the four-analyst average estimate of $572.97 million. The reported number represents a year-over-year change of -5%.

  • Advisory fees: $902.44 million versus $905.51 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -9.5% change.

  • Service and fee: $120.02 million compared to the $116.62 million average estimate based on three analysts.

View all Key Company Metrics for LPL Financial Holdings Inc. here>>>

Shares of LPL Financial Holdings Inc. have returned +10.4% over the past month versus the Zacks S&P 500 composite's +7.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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