LPL Financial was higher following its Q4 earnings report which showed the company exceeding analysts’ consensus forecast. For the quarter, it generated $3.51 per share in earnings which topped estimates of $3.39 per share. Total revenue was up 13% to reach $2.6 billion, while advisor revenue was up 20%. It also added 256 net new advisors and now has a total of 22,660 advisors.

The results were strong across the board as it saw a 22% increase in total advisory and brokerage assets, reaching $1.35 trillion. Further, it brought in $25 billion in new assets in the fourth quarter, highlighting the firm’s success in growth via acquisitions and recruitment. Another source of growth has been enterprise, where LPL manages a wealth management platform for banks, credit unions, and other institutions. Recently, it was announced that LPL would become the brokerage and wealth management platform for Prudential Financial which counts $50 billion in assets and 2,600 financial advisors. 

The firm is also looking to expand with the launch of LPL Private Wealth Management which intends to hire advisors as employees rather than as independent contractors. It believes its multi-channel approach is a differentiator and key to its success as it means the firm can appeal to all types of advisors. 

Finsum: LPL reported strong Q4 and full-year earnings which exceeded analysts’ estimates and sent the stock higher.