LPL Financial (NASDAQ: LPLA) reported Q3 EPS of $0.55, $0.01 better than the analyst estimate of $0.54. Revenue for the quarter came in at $1.06 billion versus the consensus estimate of $1.07 billion.

Updated Capital and Expense Management Plans

Capital Management Plans

• The Company announced the repositioning of its capital management plan to create greater shareholder value, including:
  • Increased share repurchase authorization to $500 million. Repurchases may be effected in open market or privately negotiated transactions, which may include a combination of an accelerated share repurchase program and open market purchases.
  • Increased target leverage to net debt of approximately 4 times adjusted EBITDA. The Company is planning to amend its credit agreement to provide for incremental upsizing of its credit facilities by up to $700 million, extension of the maturity of certain or all currently outstanding term B loans (from March 2019 to March 2021), and modification of the restricted payment provisions to enable execution of the full amount of the increased share repurchase authorization.
• The Company and Board are committed to moving forward as quickly as possible consistent with best execution, its general operating needs, and any applicable constraints under its credit agreement.

Updated Expense Management Plans

• The Company announced that it expects 2 to 4% Core G&A growth in 2016 compared to 2015, including:
  • Full-year cost of 2015 investments;
  • Prioritized 2016 investments in the Company's business, including accelerated development of its ClientWorkssm platform;
  • Planned enhancements for its financial advisors, as well as potential costs to comply with the final Department of Labor fiduciary rule; and
  • Efforts and initiatives to keep other Core G&A expenses flat.

For earnings history and earnings-related data on LPL Financial (LPLA) click here.