Houlihan Lokey (NYSE:HLI) Announces Earnings Results

Houlihan Lokey (NYSE:HLI) announced its quarterly earnings data on Wednesday. The financial services provider reported $1.94 EPS for the quarter, beating the consensus estimate of $1.85 by $0.09, Zacks reports. Houlihan Lokey had a return on equity of 24.72% and a net margin of 16.91%.The business had revenue of $717.07 million for the quarter, compared to the consensus estimate of $696.72 million. During the same period in the previous year, the business earned $1.64 earnings per share. The business’s revenue was up 13.0% on a year-over-year basis.

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

• Houlihan Lokey reported third‑quarter revenues of $717 million (up 13%) and adjusted EPS of $1.94 (up 18%), signaling broad‑based operating strength.
• Corporate Finance revenue rose to $474 million (+12%) with higher average fees and accelerating private‑equity engagement, giving management increased visibility and confidence for fiscal 2027.
• Financial Restructuring produced $156 million (+19%) driven by accelerated closings this quarter, but management expects restructuring revenues to face pressure in fiscal 2027 as market conditions normalize (with geopolitical events a potential upside risk).
• The firm is expanding its European footprint—closing Mellum’s real estate advisory business and agreeing to acquire a controlling stake in Audere Partners—which should materially strengthen its presence in France and across EMEA.
• Balance sheet liquidity remains strong with about $1.2 billion of cash and investments; management prefers using excess cash for strategic acquisitions first while continuing modest share repurchases (≈418,000 shares this quarter).

Houlihan Lokey Stock Down 6.5%

Shares of NYSE:HLI opened at $168.85 on Friday. The firm has a fifty day simple moving average of $179.54 and a two-hundred day simple moving average of $188.96. Houlihan Lokey has a 52 week low of $137.99 and a 52 week high of $211.78. The stock has a market capitalization of $11.83 billion, a P/E ratio of 25.94 and a beta of 0.95.

Houlihan Lokey Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Sunday, March 15th. Shareholders of record on Monday, March 2nd will be given a dividend of $0.60 per share. The ex-dividend date is Monday, March 2nd. This represents a $2.40 annualized dividend and a yield of 1.4%. Houlihan Lokey’s dividend payout ratio (DPR) is 38.71%.

Insider Activity

In related news, General Counsel Christopher M. Crain sold 500 shares of the stock in a transaction dated Friday, January 2nd. The shares were sold at an average price of $174.17, for a total value of $87,085.00. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Corporate insiders own 22.83% of the company’s stock.

Institutional Investors Weigh In On Houlihan Lokey

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Strategic Wealth Investment Group LLC purchased a new position in shares of Houlihan Lokey in the 2nd quarter worth approximately $39,000. Northwestern Mutual Wealth Management Co. lifted its position in Houlihan Lokey by 7.9% in the third quarter. Northwestern Mutual Wealth Management Co. now owns 956 shares of the financial services provider’s stock worth $196,000 after buying an additional 70 shares during the last quarter. Synergy Financial Group LTD bought a new stake in shares of Houlihan Lokey in the 3rd quarter worth about $200,000. Parallel Advisors LLC boosted its stake in shares of Houlihan Lokey by 24.2% during the 3rd quarter. Parallel Advisors LLC now owns 985 shares of the financial services provider’s stock worth $202,000 after purchasing an additional 192 shares during the period. Finally, Coldstream Capital Management Inc. bought a new position in Houlihan Lokey during the 3rd quarter valued at about $208,000. 78.07% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts recently commented on the company. BMO Capital Markets boosted their price target on Houlihan Lokey from $209.00 to $211.00 and gave the stock an “outperform” rating in a report on Thursday. UBS Group began coverage on shares of Houlihan Lokey in a report on Thursday, December 11th. They issued a “neutral” rating and a $193.00 target price on the stock. Keefe, Bruyette & Woods cut their target price on shares of Houlihan Lokey from $218.00 to $214.00 and set an “outperform” rating for the company in a research note on Thursday. Weiss Ratings downgraded shares of Houlihan Lokey from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, January 12th. Finally, Morgan Stanley decreased their price target on shares of Houlihan Lokey from $216.00 to $215.00 and set an “overweight” rating on the stock in a research note on Tuesday, January 6th. Four investment analysts have rated the stock with a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $208.67.

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.