Houlihan Lokey (NYSE:HLI) Issues Quarterly Earnings Results, Misses Estimates By $0.16 EPS
by Teresa Graham · The Cerbat GemHoulihan Lokey (NYSE:HLI – Get Free Report) issued its earnings results on Wednesday. The financial services provider reported $1.63 earnings per share for the quarter, missing analysts’ consensus estimates of $1.79 by ($0.16), Zacks reports. The company had revenue of $635.64 million during the quarter, compared to analyst estimates of $679.22 million. Houlihan Lokey had a net margin of 16.26% and a return on equity of 22.88%. The business’s quarterly revenue was down 4.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $1.96 EPS.
Here are the key takeaways from Houlihan Lokey’s conference call:
- Record FY2026 results — Houlihan Lokey reported $2.6 billion in revenue (up 10%) and adjusted EPS of $7.56 (up 20%), and says it finished the year with a record backlog, pipeline and number of managing directors, supporting its long‑term growth story.
- Near‑term volatility and timing delays — Q4 was uneven ($636 million revenue) as geopolitical uncertainty and software‑sector volatility extended M&A timelines and pushed the closing of two larger restructuring deals beyond quarter end, which may moderate early FY2027 growth.
- Financial Restructuring outlook has strengthened — Management cited widening credit spreads, private‑credit dislocation and energy/software dislocations as tailwinds that have driven new mandates and lead it to expect elevated restructuring activity in fiscal 2027.
- Strong balance sheet and shareholder returns — The firm ended the quarter with about $1.4 billion in cash, repurchased ~300,000 shares in Q4 and the board raised the quarterly dividend 17% to $0.70, while keeping M&A as a top capital‑allocation priority.
Houlihan Lokey Trading Down 0.4%
NYSE:HLI traded down $0.62 on Friday, reaching $152.88. 1,049,492 shares of the stock traded hands, compared to its average volume of 674,656. Houlihan Lokey has a 1-year low of $134.41 and a 1-year high of $211.78. The company’s 50 day moving average is $150.56 and its 200-day moving average is $168.85. The firm has a market capitalization of $10.67 billion, a price-to-earnings ratio of 24.58, a price-to-earnings-growth ratio of 1.09 and a beta of 0.99.
Houlihan Lokey Increases Dividend
The company also recently announced a quarterly dividend, which will be paid on Monday, June 15th. Shareholders of record on Monday, June 1st will be given a dividend of $0.70 per share. The ex-dividend date of this dividend is Monday, June 1st. This represents a $2.80 dividend on an annualized basis and a yield of 1.8%. This is a boost from Houlihan Lokey’s previous quarterly dividend of $0.60. Houlihan Lokey’s payout ratio is currently 38.59%.
Analyst Ratings Changes
HLI has been the subject of a number of research reports. Keefe, Bruyette & Woods dropped their price target on Houlihan Lokey from $177.00 to $172.00 and set an “outperform” rating for the company in a research note on Thursday. The Goldman Sachs Group reduced their price objective on Houlihan Lokey from $210.00 to $184.00 and set a “buy” rating on the stock in a research report on Wednesday, April 1st. BMO Capital Markets upped their target price on Houlihan Lokey from $209.00 to $211.00 and gave the stock an “outperform” rating in a report on Thursday, January 29th. UBS Group set a $160.00 target price on Houlihan Lokey in a research report on Thursday. Finally, Weiss Ratings lowered Houlihan Lokey from a “hold (c+)” rating to a “hold (c)” rating in a research note on Tuesday, April 21st. Five equities research analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $191.29.
Check Out Our Latest Research Report on HLI
Insider Activity
In other news, General Counsel Christopher M. Crain sold 500 shares of the company’s stock in a transaction on Wednesday, April 1st. The shares were sold at an average price of $143.40, for a total value of $71,700.00. Following the sale, the general counsel directly owned 500 shares of the company’s stock, valued at approximately $71,700. This represents a 50.00% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 22.83% of the company’s stock.
Hedge Funds Weigh In On Houlihan Lokey
A number of hedge funds have recently bought and sold shares of the company. Strategic Wealth Investment Group LLC acquired a new stake in Houlihan Lokey during the 2nd quarter worth about $39,000. CIBC Private Wealth Group LLC lifted its stake in shares of Houlihan Lokey by 177.0% in the 4th quarter. CIBC Private Wealth Group LLC now owns 277 shares of the financial services provider’s stock valued at $48,000 after purchasing an additional 177 shares during the period. Quarry LP bought a new stake in shares of Houlihan Lokey during the 4th quarter valued at about $90,000. AlphaCentric Advisors LLC acquired a new stake in Houlihan Lokey during the fourth quarter worth approximately $150,000. Finally, Northwestern Mutual Wealth Management Co. grew its stake in Houlihan Lokey by 7.9% during the third quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider’s stock worth $196,000 after purchasing an additional 70 shares during the period. Institutional investors own 78.07% of the company’s stock.
Houlihan Lokey Company Profile
Houlihan Lokey, Inc is a global investment bank and financial services firm founded in 1972 and headquartered in Los Angeles, California. The company specializes in advisory services across a broad range of transaction types and financial matters. Since its founding, Houlihan Lokey has grown to serve corporations, financial sponsors, and government entities worldwide, providing expertise in complex and high-stakes engagements.
The firm’s core service offerings include mergers and acquisitions advisory, capital markets advisory, financial restructuring and distressed M&A, and valuation and fairness opinions.