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LPL Financial Holdings Inc LPLA

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Client Asset Growth More Than Offset Mild Headwinds in LPL Financial’s Second Quarter

Michael Wong, CFA, CPA Sector Director

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.

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Company Profile

Business Description

LPL Financial Holdings is an independent broker/dealer that provides a platform of proprietary technology, brokerage, and investment advisory services to financial advisors and institutions. The company also provides financial advisors licensed with insurance companies customized clearing services, advisory platforms, and technology solutions. LPL provides a range of services through its subsidiaries. Private Trust supplies trust administration, investment management oversight, and custodial services for estates and families; Independent Advisers Group offers investment advisory solutions to insurance companies; and LPL Insurance Associates operates as a brokerage general agency that offers life, long-term care, and disability insurance sales and services.

Contact
4707 Executive Drive
San Diego, CA, 92121
T +1 800 877-7210
Sector Financial Services
Industry Capital Markets
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2020
Stock Type Cyclical
Employees 5,344

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