LPL Financial (LPLA) Q4 Preview: Key Information Before Earnings Release

LPL Financial Set to Announce Earnings: What Investors Should Watch

This Thursday after the market closes, LPL Financial (NASDAQ:LPLA), an independent financial services provider, will release its latest earnings report. Here’s a breakdown of what investors need to know ahead of the announcement.

Recent Performance Highlights

In the previous quarter, LPL Financial surpassed Wall Street’s revenue forecasts by 5%, posting $4.55 billion in revenue—a remarkable 46.4% increase compared to the same period last year. The company also outperformed analysts’ expectations for earnings per share, marking a standout quarter.

Is LPL Financial a Good Investment Before Earnings?

Curious about whether LPL Financial is a buy or sell ahead of its earnings release?

Expectations for the Upcoming Quarter

Analysts project that LPL Financial’s revenue will climb 38.9% year-over-year to reach $4.88 billion this quarter, an improvement over the 32.9% growth seen in the same quarter last year. Adjusted earnings per share are anticipated to be $4.90.

LPL Financial Total Revenue

Analyst Sentiment and Track Record

Over the past month, analysts have largely maintained their forecasts, indicating confidence in the company’s direction as earnings approach. Notably, LPL Financial has consistently outperformed revenue estimates for eight consecutive quarters, with an average beat of 3.3%.

Industry Peers: Recent Results

Some of LPL Financial’s competitors in the investment banking and brokerage sector have already shared their fourth-quarter results, offering some context for expectations. Jefferies reported a 5.7% increase in revenue year-over-year, exceeding analyst projections by 3%, while Goldman Sachs saw a 3% decline in revenue but still managed to beat estimates by 0.5%. Following their reports, Jefferies’ stock dropped 5.6%, whereas Goldman Sachs’ shares rose 3.1%.

Market Reaction and Analyst Price Targets

Investor sentiment in the investment banking and brokerage space has remained steady, with share prices showing little movement over the past month. LPL Financial’s stock has also held flat, and analysts currently have an average price target of $445.92, compared to its present price of $365.20.

Spotlight: Share Buybacks and a Special Opportunity

When a company has excess cash, repurchasing its own shares can be a smart move—provided the valuation is attractive. We’ve identified a promising, undervalued stock that is generating significant free cash flow and actively buying back shares.