LPL Financial, Inc. (LPLA) reported 3Q22 results, with diluted Earnings Per Share (EPS) of $2.86, up 127% from a year ago. Here are five things you should know about this earnings call:
- LPLA had a very positive Q3 compared to this time last year. Gross profit increased 33% from a year ago to $838 million. EBITDA (Earnings Before Interest, Taxes, Depreciation, Amortization) increased 84% from a year ago to $414 million. Net income grew from $103 million in 3Q21 to $232 million in 3Q22, a year-over-year (YoY) increase of 125%. LPLA overall presented a very strong quarter of financial performance.
- Despite strong financial performance, total advisory and brokerage assets decreased to $1.04 trillion, an 8% decrease YoY. Furthermore, advisory assets decreased to $543 billion, a 9% decrease from the prior year. As a percentage of total assets, advisory assets decreased from 52.4% a year ago to 52.3%.
- Total organic net new assets were $20 billion in Q3, representing 7% annualized growth. Over the past 12 months, total organic net new assets were $101 billion and represented 9% growth. Organic net new brokerage assets grew at 7% annualized growth to $9 billion. Organic net new advisory assets had even better performance of 8% annualized growth and $11 billion of assets.
- Recruited assets (assets expected to transition over to the company’s broker dealer subsidiary) were $13 billion in Q3. Recruited assets over the trailing twelve months (TTM) were $84 billion. This is up roughly 2% from a year ago. Contributing to this growth is LPLA’s advisor count which is 21,044 and up 173 from 2Q22 and up 1,417 from this time last year.
- Despite turbulent market conditions, the company believes they provided solid financial results in Q3. Management reaffirmed that they are focused on long term growth and are showing so by expanding and continuing to reinvest in their service offerings.
To learn more visit – LPL Financial Announces Third Quarter 2022 Results
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