Houlihan Lokey (HLI) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Houlihan Lokey (HLI) is anticipated to report a year-over-year increase in earnings and revenues for the quarter ended March 2025, with earnings expected to be $1.54 per share, reflecting a +21.3% change, and revenues projected at $626.21 million, up 20.3% from the previous year [1][3]. Group 1: Earnings Expectations - The upcoming earnings report is scheduled for May 7, and the stock may rise if the reported numbers exceed expectations, while a miss could lead to a decline [2]. - The consensus EPS estimate has been revised down by 3.47% over the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Houlihan Lokey is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -9.55%, suggesting a bearish outlook from analysts [10][11]. Group 2: Earnings Surprise Prediction - The Zacks Earnings ESP model compares the Most Accurate Estimate to the Zacks Consensus Estimate, with the premise that recent revisions may provide more accurate insights [6]. - A positive Earnings ESP is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which historically leads to a positive surprise nearly 70% of the time [8]. - Houlihan Lokey's current Zacks Rank is 4, making it challenging to predict an earnings beat conclusively [11]. Group 3: Historical Performance - In the last reported quarter, Houlihan Lokey exceeded the expected earnings of $1.51 per share by delivering $1.64, resulting in a surprise of +8.61% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates three times [13]. Group 4: Market Reactions - An earnings beat or miss may not solely dictate stock movement, as other factors can influence investor sentiment [14]. - While betting on stocks expected to beat earnings increases the odds of success, it is essential to consider other influencing factors before making investment decisions [15]. - Overall, Houlihan Lokey does not currently appear to be a compelling candidate for an earnings beat, and investors should monitor additional factors [16].