Yahoo Finance LPL Financial Holdings Inc. Just Recorded A 8.5% EPS Beat: Here's What Analysts Are Forecasting Next
LPL Financial Holdings Inc. (NASDAQ:LPLA) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$2.8b arriving 4.1% ahead of forecasts. Statutory earnings per share (EPS) were US$3.83, 8.5% ahead of estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on LPL Financial Holdings after the latest results.
View our latest analysis for LPL Financial Holdings
Following the latest results, LPL Financial Holdings' eleven analysts are now forecasting revenues of US$11.6b in 2024. This would be a meaningful 11% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 7.7% to US$14.65. In the lead-up to this report, the analysts had been modelling revenues of US$11.5b and earnings per share (EPS) of US$14.44 in 2024. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.
There were no changes to revenue or earnings estimates or the price target of US$299, suggesting that the company has met expectations in its recent result. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values LPL Financial Holdings at US$326 per share, while the most bearish prices it at US$245. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting LPL Financial Holdings is an easy business to forecast or the the analysts are all using similar assumptions.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of LPL Financial Holdings'historical trends, as the 15% annualised revenue growth to the end of 2024 is roughly in line with the 15% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.9% per year. So although LPL Financial Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$299, with the latest estimates not enough to have an impact on their price targets.
With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for LPL Financial Holdings going out to 2026, and you can see them free on our platform here..
Even so, be aware that LPL Financial Holdings is showing 2 warning signs in our investment analysis , and 1 of those doesn't sit too well with us...
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
