Houlihan Lokey (NYSE:HLI) Issues Quarterly Earnings Results

Houlihan Lokey (NYSE:HLI) released its quarterly earnings data on Wednesday. The financial services provider reported $1.85 earnings per share for the quarter, beating analysts’ consensus estimates of $1.63 by $0.22, FiscalAI reports. Houlihan Lokey had a return on equity of 19.97% and a net margin of 15.78%. The business had revenue of $692.00 million during the quarter, compared to analyst estimates of $625.88 million. During the same quarter last year, the business posted $1.84 EPS. The company’s revenue was up 4.9% on a year-over-year basis.

Here are the key takeaways from Houlihan Lokey’s conference call:

• Second-quarter revenue rose 5% to $692 million, while adjusted EPS was flat year over year at $1.85, reflecting improving activity but continued macroeconomic volatility.
• Corporate Finance revenue increased 10% to $481 million despite fewer completed transactions, as higher average fees and a strengthening backlog support expectations for an above-normal second half.
• Financial Restructuring revenue fell 12% year over year to $118 million, but management cited improving activity, record backlog, and software-related mandates as drivers of stronger results in the second half and through fiscal 2028.
• Software remains a significant headwind, and management does not expect software revenue to match last year’s level; healthcare weakness was characterized as primarily a timing issue.
• Financial and Valuation Advisory revenue rose 7% to $93 million, led by the relatively non-cyclical portfolio valuation business, while the company continued expanding its talent base through 12 managing-director additions and the Intrepid acquisition.

Houlihan Lokey Stock Performance

HLI traded down $2.02 on Friday, hitting $137.32. 315,577 shares of the company were exchanged, compared to its average volume of 731,431. Houlihan Lokey has a 12 month low of $112.83 and a 12 month high of $202.49. The stock has a market capitalization of $9.48 billion, a PE ratio of 23.04, a price-to-earnings-growth ratio of 1.79 and a beta of 1.00. The firm has a fifty day simple moving average of $131.01 and a two-hundred day simple moving average of $145.15.

Houlihan Lokey Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Tuesday, December 15th. Stockholders of record on Tuesday, December 1st will be given a dividend of $0.70 per share. This represents a $2.80 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date is Tuesday, December 1st. Houlihan Lokey’s dividend payout ratio (DPR) is 46.98%.

Insider Activity at Houlihan Lokey

In related news, General Counsel Christopher M. Crain sold 1,000 shares of Houlihan Lokey stock in a transaction dated Thursday, September 10th. The stock was sold at an average price of $140.15, for a total value of $140,150.00. Following the completion of the transaction, the general counsel owned 1,000 shares in the company, valued at $140,150. The trade was a 50.00% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 22.53% of the stock is owned by insiders.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. The Goldman Sachs Group lowered their target price on shares of Houlihan Lokey from $171.00 to $148.00 and set a “buy” rating on the stock in a research report on Thursday, July 30th. Citigroup raised Houlihan Lokey to an “outperform” rating in a report on Friday, October 9th. Bank of America started coverage on Houlihan Lokey in a research note on Friday, July 10th. They issued a “buy” rating and a $164.00 target price for the company. Morgan Stanley dropped their price objective on shares of Houlihan Lokey from $177.00 to $165.00 and set an “overweight” rating on the stock in a report on Thursday, October 8th. Finally, Keefe, Bruyette & Woods cut their price objective on shares of Houlihan Lokey from $160.00 to $153.00 and set an “outperform” rating on the stock in a research note on Thursday, July 30th. Seven investment analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $160.44.

Houlihan Lokey Company Profile

Houlihan Lokey, Inc is a global investment banking and financial advisory firm that provides services to corporations, institutions, financial sponsors and governments. The company advises clients on mergers and acquisitions, capital raising, financial restructuring and other strategic and corporate finance matters.

Its business also includes valuation and financial opinions, including fairness opinions, solvency opinions and other transaction-related analyses. Houlihan Lokey serves clients across a range of industries, with particular expertise in areas such as technology, media and telecommunications; financial services; healthcare; industrials; consumer products and services; and energy and natural resources.

Founded in 1972 by Roger Houlihan and O.