NEW YORK ( TheStreet) -- LPL Financial Holdings (Nasdaq: LPLA) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity, good cash flow from operations, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company shows low profit margins.
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- The revenue growth came in higher than the industry average of 6.0%. Since the same quarter one year prior, revenues slightly increased by 8.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Capital Markets industry and the overall market, LPL FINANCIAL HOLDINGS INC's return on equity exceeds that of both the industry average and the S&P 500.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Capital Markets industry. The net income increased by 32.9% when compared to the same quarter one year prior, rising from $41.18 million to $54.72 million.
- Net operating cash flow has significantly increased by 125.94% to $7.28 million when compared to the same quarter last year. In addition, LPL FINANCIAL HOLDINGS INC has also vastly surpassed the industry average cash flow growth rate of -294.96%.
- LPL FINANCIAL HOLDINGS INC has improved earnings per share by 37.8% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, LPL FINANCIAL HOLDINGS INC reported lower earnings of $1.37 versus $1.50 in the prior year. This year, the market expects an improvement in earnings ($2.34 versus $1.37).