LPLA – Market expectations are for Uniform ROA to decline, but management is confident about operating leverage, growth, and their pipeline

• LPL Financial Holdings Inc. (LPLA:USA) currently trades near historical lows relative to UAFRS-based (Uniform) Earnings, with a 14.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, but management is confident about operating leverage, growth, and their pipeline
• Specifically, management is confident total brokerage and advisory assets exceeded $700bn for the first time, and they are confident about the strength of their product pipeline. Furthermore, they are confident they had $8.5bn of recruited AUM in the quarter and that they delivered operating leverage. Additionally, they are confident they returned $21mn in capital from quarterly dividends, and they are confident they are focused on growing assets and gross profit.