Earnings Update: Here's Why Analysts Just Lifted Their LPL Financial Holdings Inc. (NASDAQ:LPLA) Price Target To US$309

It's been a good week for LPL Financial Holdings Inc. (NASDAQ:LPLA) shareholders, because the company has just released its latest quarterly results, and the shares gained 4.5% to US$276. Results overall were respectable, with statutory earnings of US$3.39 per share roughly in line with what the analysts had forecast. Revenues of US$3.1b came in 2.2% ahead of analyst predictions. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

See our latest analysis for LPL Financial Holdings

Following the latest results, LPL Financial Holdings' twelve analysts are now forecasting revenues of US$13.8b in 2025. This would be a notable 20% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to grow 18% to US$15.88. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$13.7b and earnings per share (EPS) of US$15.76 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

The consensus price target rose 9.8% to US$309despite there being no meaningful change to earnings estimates. It could be that the analystsare reflecting the predictability of LPL Financial Holdings' earnings by assigning a price premium. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. Currently, the most bullish analyst values LPL Financial Holdings at US$400 per share, while the most bearish prices it at US$245. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. 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 2025 is roughly in line with the 16% annual growth over the past five years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 5.9% annually. 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 obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous 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. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. 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..

It is also worth noting that we have found 1 warning sign for LPL Financial Holdings that you need to take into consideration.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

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.