In its upcoming report, LPL Financial Holdings Inc. (LPLA) is predicted by Wall Street analysts to post quarterly earnings of $5.49 per share, reflecting an increase of 6.6% compared to the same period last year. Revenues are forecasted to be $4.98 billion, representing a year-over-year increase of 34.9%.
The current level reflects a downward revision of 4.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
In light of this perspective, let's dive into the average estimates of certain LPL Financial metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts' assessment points toward 'Revenue- Commission- Total' reaching $1.23 billion. The estimate indicates a change of +17.7% from the prior-year quarter.
The combined assessment of analysts suggests that 'Revenue- Service and fee' will likely reach $192.04 million. The estimate suggests a change of +32.3% year over year.
Analysts predict that the 'Revenue- Asset-based- Total' will reach $836.36 million. The estimate suggests a change of +20.3% year over year.
Analysts forecast 'Revenue- Advisory' to reach $2.55 billion. The estimate points to a change of +50.9% from the year-ago quarter.
The consensus among analysts is that 'Revenue- Transaction' will reach $80.38 million. The estimate indicates a change of +18.5% from the prior-year quarter.
The average prediction of analysts places 'Advisory and Brokerage Assets - Brokerage assets' at $943.47 billion. The estimate is in contrast to the year-ago figure of $817.50 billion.
The consensus estimate for 'Advisory and Brokerage Assets - Total' stands at $2315.14 billion. The estimate is in contrast to the year-ago figure of $1794.90 billion.
The collective assessment of analysts points to an estimated 'Advisory and Brokerage Assets - Advisory assets' of $1371.67 billion. The estimate is in contrast to the year-ago figure of $977.40 billion.
According to the collective judgment of analysts, 'Advisors' should come in at 32,352 . Compared to the current estimate, the company reported 29,493 in the same quarter of the previous year.
Analysts expect 'Net New Assets - Net new advisory assets' to come in at $27.85 billion. Compared to the current estimate, the company reported $37.60 billion in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Net New Assets - Total' should arrive at $24.19 billion. The estimate compares to the year-ago value of $78.80 billion.
It is projected by analysts that the 'Net New Assets - Net new brokerage assets' will reach -$3.67 billion. Compared to the current estimate, the company reported $41.20 billion in the same quarter of the previous year.
View all Key Company Metrics for LPL Financial here>>>LPL Financial shares have witnessed a change of +10.9% in the past month, in contrast to the Zacks S&P 500 composite's +12.2% move. With a Zacks Rank #4 (Sell), LPLA is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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LPL Financial Holdings Inc. (LPLA): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).