LPL Financial announced that its earnings exceeded analysts’ expectations during the fourth quarter of last year, culminating in a huge 2018 for the firm in both advisor recruiting and organic growth. The report appeared to indicate that LPL has put most of the logistical problems it encountered in early 2018 following its acquisition of four National Planning Holdings broker-dealers from Jackson National behind it.
The nation’s largest independent brroker-dealer reported that fourth quarter earnings per share prior to intangibles came in at $1.49, a new record for the firm and easily topping estimates of $1.37 and a 96 percent increase year over year. The company’s full-year earnings per share for 2018 came in at $5.33, an 88 percent increase from 2017.
If there were negative side effects from the steep correction that equities suffered in the fourth quarter, they weren't evident in LPL's financial results. During the past 12 months, its shares have climbed from $63.10 a share to $74.94 as of this morning.
"Over the past year, we delivered solid business and financial results as we increased organic growth and completed our acquisition of NPH," said Dan Arnold, president and CEO, in released comments. "As we look forward, we remain focused on serving our advisors and helping them differentiate and win in the marketplace. Our efforts include delivering best-in-class digital capabilities and tools, including our acquisition of AdvisoryWorld. We believe our strategy positions us to continue driving long-term growth and shareholder value.”
LPL’s recruiting efforts added $27.3 billion in new assets during 2018, a 9 percent increase and a new record, while organic growth accounted for another $14.3 billion in new assets, also a record for the IBD.
As a result, the firm’s earnings plus interest, tax, depreciation and debt expenses for the full year 2018 came to $866 million, a 40 percent year-over-year increase.
LPL’s advisor count now comes in at 16,109, with total brokerage and advisory assets as of Dec. 31, 2018 coming to $628 billion, a 2 percent year-over-year increase.