LPL Financial’s Earnings Outperform Peers Due to Interest Rates and Expanding Operating Margins

As expected, LPL Financial's second-quarter results were better than peers', due to growth in interest-rate-related revenue and the corresponding expansion of the firm's operating margins. LPL Financial reported net income of $161 million, or $1.97 per diluted share, on $711 million of gross profit (which was a record for the firm). Gross profit increased 18% from the previous year and 6% sequentially with the majority of the increase from the previous year and all of the sequential increase driven by client cash levels and interest rates.