LPL Financial Says Steeper-Than-Expected Charges To Hurt Q3 Earnings

(RTTNews) - LPL Financial Holdings Inc (LPLA) said Tuesday its earnings for the third quarter would be hurt by steeper-than-expected charges related to regulatory matters.

The company now expects regulatory matters-related charges of $23 million in the third quarter, $18 million more than anticipated and which hurt earnings by $0.11 per share.

As a result, LPL expects third-quarter net earnings of $0.32 to $0.34 per share, and adjusted earnings of $0.47 and $0.49 per share.

Analysts polled by Thomson Reuters currently expect earnings of $0.59 per share for the quarter. Analysts' estimates typically exclude special items.

The company said the regulatory charges relate to issues involving its systems, policies and procedures.

"Beginning in the last weeks of the third quarter, we made progress towards the resolution of certain regulatory matters that contributed to us taking a larger than expected charge," stated Mark Casady, chairman and CEO of LPL Financial.

LPL expects third-quarter revenue to be consistent with prior expectations at about $1.1 billion, in line with analysts' estimates.