Core Viewpoint - Houlihan Lokey (HLI) shares experienced a 4.2% increase, closing at $175.31, following a notable trading volume, contrasting with a 5.5% decline over the past four weeks [1] Group 1: Company Strengths - Houlihan Lokey's competitive advantages include its global presence and a credible team of financial professionals, making it a leader in Corporate Finance, Financial Restructuring, and Financial Valuation Advisory services [2] - The company's independent and conflict-free business model enhances its reputation by prioritizing client interests [3] Group 2: Recent Developments - Riccardo Cazzoli has been appointed as managing director in the Consumer Group, which is recognized for excellence in mergers and acquisitions, capital-raising, and valuation advisory services [3] Group 3: Financial Performance Expectations - The upcoming quarterly earnings report is expected to show earnings of $1.51 per share, reflecting a year-over-year increase of 23.8%, with revenues projected at $592.21 million, up 15.9% from the previous year [4] - The consensus EPS estimate for the quarter has been revised slightly higher over the last 30 days, indicating a positive trend that typically correlates with stock price appreciation [5] Group 4: Industry Context - Houlihan Lokey is part of the Zacks Financial - Miscellaneous Services industry, where another company, LendingClub (LC), saw a 5.7% increase in its stock price, although it has returned -13.3% over the past month [5]

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Group 1 - Houlihan Lokey (NYSE: HLI) has shown positive growth across all segments following the SVB collapse in early 2023, with notable results from restructuring in a counter-cyclical M&A environment [2] - The Value Lab offers a portfolio targeting a yield of about 4%, focusing on international mispriced equities and providing members with real-time updates and market news [1][2] - The Valkyrie Trading Society consists of analysts sharing high conviction ideas that are expected to generate non-correlated and outsized returns in the current economic environment [3]

Houlihan Lokey (HLI) came out with quarterly earnings of $1.46 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $1.11 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 11.45%. A quarter ago, it was expected that this investment banking company would post earnings of $1.22 per share when it actually produced earnings of $1.22, delivering no surprise. Over the last four quarters, th ...

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Houlihan Lokey, with a focus on how actual results compare to estimates impacting stock price movements [1] Earnings Expectations - Houlihan Lokey is expected to report quarterly earnings of $1.31 per share, reflecting an 18% increase year-over-year [2] - Revenues are projected to be $529.66 million, which is a 13.4% increase from the same quarter last year [2] Estimate Revisions - The consensus EPS estimate has been revised down by 1.53% over the last 30 days, indicating a reassessment by analysts [3] - The Most Accurate Estimate for Houlihan Lokey is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -2.43% [6] Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a favorable Zacks Rank [5] - Houlihan Lokey currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat [6] Historical Performance - In the last reported quarter, Houlihan Lokey met the expected earnings of $1.22 per share, showing no surprise [7] - Over the past four quarters, the company has beaten consensus EPS estimates three times [7] Conclusion - An earnings beat or miss may not solely dictate stock price movements, as other factors can influence investor sentiment [8] - Houlihan Lokey does not appear to be a compelling earnings-beat candidate, and investors should consider additional factors before making decisions [8]

Houlihan Lokey, Inc. (HLI) has signed an agreement to acquire Waller Helms Advisors ("Waller Helms"). The deal, expected to be completed by Dec 31, 2024, aligns with the company's inorganic expansion strategy. The financial terms of the deal were not revealed. Chicago-based Waller Helms, founded in 2014, offers advisory services associated with mergers and acquisitions (M&A), private capital raising and valuation services, advising clients mainly in the insurance and wealth management sectors. Since its inc ...

Mission We help our clients achieve superior outcomes by providing thoughtful, caring advice while acting with honor and integrity We are strategic in our approach to growth and are committed to creating lasting value for our shareholders We maintain an intellectually stimulating, fair, and fun place to work We seek to improve our local and global communities through the responsible and direct actions of our firm and its people Houlihan Lokey 32 HL.com We maintain a revolver of $100 million which has remain ...

Financial Data and Key Metrics Changes - The company reported revenues of $514 million for the first quarter, a 24% increase compared to the same quarter last year, with adjusted earnings per share rising 37% to $1.22 [17] - The adjusted compensation expense ratio remained stable at 61.5% for both fiscal 2025 and 2024 [26] - Adjusted other income and expense produced income of approximately $5.1 million, up from $3 million in the same period last year, primarily due to a net increase in interest income [27] - The adjusted effective tax rate for the quarter was 31.2%, compared to 29.2% for the same quarter last year, driven by increased non-deductible expenses [44] Business Line Data and Key Metrics Changes - Corporate Finance generated $328 million in revenues, a 45% increase year-over-year, with 116 transactions closed compared to 95 in the same period last year [41] - Financial Restructuring revenues were $117 million, a 5% decrease from the previous year, with 33 transactions closed, up from 30 [21] - Financial and Valuation Advisory (FVA) produced $68 million in revenues, a 4% increase year-over-year, with 847 fee events compared to 786 in the same period last year [42] Market Data and Key Metrics Changes - The capital markets business is experiencing strong demand, particularly in the middle market, as capital providers seek to deploy capital [3] - The company noted that the European market is picking up, albeit at a slower pace than the U.S. market, following recent rate cuts by the ECB [63] Company Strategy and Development Direction - The company is optimistic about fiscal 2025, anticipating improved M&A and capital markets activity, and is well-positioned to capitalize on the recovery [23] - The acquisition of Triago has expanded the company's private funds capabilities, adding seven managing directors and enhancing its market presence [18] - The company continues to focus on filling underweighted sectors in the industry through both organic hires and acquisitions [116] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the current market conditions driving improved M&A activity, despite macro uncertainties such as interest rates and political factors [1] - The restructuring business is expected to see fluctuations, with potential for increased activity if M&A picks up significantly [64] - Management indicated that the credit markets remain healthy, and they do not view recent restructuring events as indicative of broader market stress [32] Other Important Information - The company added 27 new managing directors in the quarter and promoted 14 from director to managing director [19] - The company has approximately $485 million in unrestricted cash and equivalents, with a decline in cash position due to bonus payments [28] Q&A Session Summary Question: What is the outlook for Corporate Finance? - Management noted continued improvement in Corporate Finance, with a focus on transaction size and close rates, benefiting from a stronger reputation in Europe [48][49] Question: How is the restructuring business performing? - Management indicated that the restructuring business can be lumpy, but they do not see recent restructuring events as a sign of broader market issues [32] Question: What are the growth opportunities in private funds? - Management highlighted the evolving nature of the private funds market, particularly in secondaries and directs, as areas of growth potential [36] Question: How is the company positioned for capital markets activity? - Management stated that the capital markets business is growing due to increased private capital market activity and is well-positioned for future opportunities [55] Question: What is the trajectory for restructuring in the coming years? - Management expects the distressed business to continue growing, with a stable percentage of defaults anticipated [64] Question: What is the outlook for non-compensation expenses? - Management expects non-compensation expenses to normalize, with a trajectory dependent on revenue growth [97]