LPL Boosts Profits 84%, Adds 125 Reps: Q3 Earnings

In terms of asset growth by platform, the corporate platform saw year-over-year growth of 27% to about $185 billion, while the brokerage platform expanded 21% to $375 billion. LPL's hybrid platform expanded 15% to $121 billion.

Net new advisory asset flows were $5.9 billion on the corporate platform but -$0.8 billion on the hybrid platform. In the second quarter, hybrid asset flows were $0.6 billion, and in Q3'17, they were $2.9 billion.

As for net new advisors, 125 registered reps came on board in the latest quarter, giving the firm a headcount of 16,174. In the earlier quarter, the company had a net loss of 18 advisors, and in Q3'17, it reported a net loss of 3 reps.

In a research note on Friday, William Blair equity analysts summed up their view of the firm as follows: "We are encouraged by LPL's progress and execution, but maintain our Market Perform rating for now as it feels like much of the low-hanging fruit has been picked (cost takeout, rate hikes, etc.) and the competitive and market environments are getting tougher."

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