Analyst Note| Michael Wong, CFA, CPA |
Strong organic and acquired client asset growth at LPL Financial more than offset mild headwinds in certain revenue lines during the company's second quarter. The firm reported net income of $119 million, or $1.46 per diluted share, on $602 million of gross profit during the period. Excluding $20 million for the amortization of intangible assets and $24 million of acquisition costs, LPL Financial would have reported adjusted earnings per share of $1.85 compared with $1.42 in the year-ago period (and $1.77 for the March quarter). We don’t anticipate making a significant increase to our $134 per share fair value estimate for the narrow-moat firm.