Houlihan Lokey (NYSE:HLI) Posts Earnings Results, Beats Expectations By $0.22 EPS

Houlihan Lokey (NYSE:HLI) released its quarterly earnings data on Wednesday. The financial services provider reported $1.85 earnings per share for the quarter, topping analysts’ consensus estimates of $1.63 by $0.22, FiscalAI reports. The business had revenue of $692.00 million for the quarter, compared to analysts’ expectations of $625.88 million. Houlihan Lokey had a net margin of 16.10% and a return on equity of 20.20%. The company’s revenue for the quarter was up 4.9% compared to the same quarter last year. During the same quarter last year, the company earned $1.84 EPS.

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 Price Performance

NYSE HLI traded up $3.11 on Thursday, hitting $140.49. 809,533 shares of the stock were exchanged, compared to its average volume of 729,131. The company has a market capitalization of $9.70 billion, a PE ratio of 23.62, a P/E/G ratio of 1.71 and a beta of 1.00. Houlihan Lokey has a 52 week low of $112.83 and a 52 week high of $202.49. The business’s fifty day moving average is $130.82 and its 200 day moving average is $145.36.

Houlihan Lokey Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Tuesday, December 1st will be paid a $0.70 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This represents a $2.80 annualized dividend and a dividend yield of 2.0%. Houlihan Lokey’s dividend payout ratio (DPR) is currently 47.06%.

Key Stories Impacting Houlihan Lokey

Here are the key news stories impacting Houlihan Lokey this week:

• Positive Sentiment: Quarterly results beat expectations. Houlihan Lokey reported adjusted earnings of $1.85 per share, exceeding the $1.58-$1.63 analyst estimates cited in coverage. Revenue reached $692 million, well above the roughly $626 million consensus forecast. Houlihan Lokey Tops Q2 Earnings and Revenue Estimates
• Positive Sentiment: Revenue growth remained positive. Quarterly revenue increased 4.9% year over year, while net margin was 16.1% and return on equity was 20.2%, indicating continued profitability and solid operating performance. Houlihan Lokey Reports Second-Quarter Earnings
• Positive Sentiment: Dividend provides shareholder support. The company declared a quarterly dividend of $0.70 per share, or $2.80 annualized, with a roughly 2.0% yield. Investors must own shares before the December 1 ex-dividend date to receive the December 15 payment.
• Neutral Sentiment: Management’s earnings-call discussion and presentation may provide additional detail on deal activity, operating trends and the outlook, which investors will weigh alongside the reported results. Houlihan Lokey Q2 2027 Earnings Call Transcript
• Negative Sentiment: Year-over-year earnings growth was limited. EPS of $1.85 was only slightly above $1.84 a year earlier, suggesting that the large estimate beat was driven more by conservative expectations than by rapid profit expansion. Investors may also remain focused on valuation and whether future results can sustain the recent performance.

Analyst Ratings Changes

Several research analysts have issued reports on HLI shares. UBS Group lifted their price target on shares of Houlihan Lokey from $147.00 to $154.00 and gave the stock a “neutral” rating in a research report on Wednesday, October 7th. Citizens Jmp raised Houlihan Lokey from a “market perform” rating to an “outperform” rating and set a $175.00 price target for the company in a research report on Friday, October 9th. Zacks Research raised Houlihan Lokey from a “strong sell” rating to a “hold” rating in a report on Tuesday, October 13th. The Goldman Sachs Group reduced their target price on shares of Houlihan Lokey from $171.00 to $148.00 and set a “buy” rating for the company in a research note on Thursday, July 30th. Finally, Citigroup raised shares of Houlihan Lokey to an “outperform” rating in a report on Friday, October 9th. Seven investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $161.38.

Insider Activity

In other news, General Counsel Christopher M. Crain sold 1,000 shares of the company’s stock in a transaction that occurred on Thursday, September 10th. The stock was sold at an average price of $140.15, for a total value of $140,150.00. Following the transaction, the general counsel owned 1,000 shares of the company’s stock, valued at approximately $140,150. This represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. 22.53% of the stock is currently owned by corporate insiders.

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.