NYSE$HLI

Houlihan Lokey Inc. · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Houlihan Lokey's financial performance in Q2 2021 showed increased revenues and earnings per share.

Houlihan Lokey reported revenues of $276 million for the second quarter of fiscal year 2021, compared to $273 million for the same period in the previous year. Net income increased to $49 million, or $0.70 per diluted share, from $33 million, or $0.50 per diluted share, in the prior year. Adjusted diluted EPS was $0.75, compared to $0.70 in the prior year.

  • Second Quarter Fiscal 2021 Revenues were $276 million.
  • Second Quarter Fiscal 2021 Diluted EPS reached $0.70.
  • Adjusted Second Quarter Fiscal 2021 Diluted EPS was $0.75.
  • A dividend of $0.33 per share was announced for the Third Quarter Fiscal 2021.

Headline financials

Total Revenue

$276M

Previous: $273M+1.1%
EPS (adj)

$0.75

Previous: $0.70+7.1%
CF Closed Transactions

53

Previous: 69-23.2%
CF Managing Directors

125

Previous: 119+5.0%
FR Closed Transactions

30

Previous: 17+76.5%
FR Managing Directors

47

Previous: 45+4.4%
FVA Fee Events

539

Previous: 523+3.1%
FVA Managing Directors

31

Previous: 32-3.1%
Capital Expenditures

-$6.55M

Previous: -$14.3M+54.2%
Free Cash Flow

$88.3M

Previous: $18.8M+369.2%
Net Income

$94.9M

Previous: $33.1M+186.6%
Operating Income

$66.9M

Previous: $45.2M+48.1%
Gross Profit

$90.8M

Previous: $75.2M+20.7%
Cash & Equivalents

$422M

Previous: $220M+91.6%
Total Assets

$1.84B

Previous: $1.45B+26.8%

Revenue & EPS history

Houlihan Lokey · Revenue · Quarterly

$276M

Q2 2021+1.1%vs Q2 2020
Beat estimate in 14 of 16 quarters(88%)
ActualEstimate

Revenue by segment

Houlihan Lokey · $276M total across 3 segments · Q2 2021

  • Financial Restructuring
    $125M+62.3%
  • Corporate Finance
    $108M-30.7%
  • Financial & Valuation Advisory
    $42.3M+6.9%

Forward guidance

The COVID-19 pandemic has had a substantial effect on the global markets, and has created uncertainty, volatility and dislocation among a wide variety of sectors. Revenues during the second quarter ended September 30, 2020 continued to be impacted by the COVID-19 pandemic and the company expects it to continue to have an effect on our business, revenues, and operating results in the short term. While our CF revenues will be adversely impacted for an indeterminable period of time by the economic effects of COVID-19, we continue to see an increase in the demand for services in our FR business.

Tailwinds

  • Strong revenues in Financial Restructuring.
  • Strong revenues in Capital Markets.
  • Good momentum in all three product lines.
  • Increase in the demand for services in Financial Restructuring business.
  • Employees working hard to deliver exceptional advice to clients.

Headwinds

  • Challenging environment due to COVID-19.
  • Lower revenues in M&A due to the pandemic.
  • CF revenues will be adversely impacted for an indeterminable period of time by the economic effects of COVID-19.
  • Uncertainty in the global markets.
  • Volatility among a wide variety of sectors.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+1.2%

Avg return

Earnings day

+1.5%

Avg return

5 days after

+1.5%

Avg return

30 days after

63%

30 / 48 earnings

Positive

+12.2%

Q2 2022

Best reaction

-10.7%

Q2 2026

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+4.3%+1.5%-5.6%
Q3 2026-6.6%-0.7%-3.0%
Q2 2026-10.7%-10.0%-12.0%
Q4 2025+6.8%+8.7%+7.9%
Q3 2025-2.3%-1.9%-5.8%
Q2 2025+3.6%+2.2%+13.4%
Q1 2025+1.7%-1.5%+4.5%
Q4 2024+0.3%+1.3%-2.7%
Q3 2024+5.9%+3.7%+6.2%
Q2 2024+1.5%+3.7%+9.4%
Q1 2024-8.3%-7.2%-5.5%
Q4 2023+6.1%+1.6%+7.1%
Q3 2023-0.2%+3.2%-2.9%
Q2 2023+9.3%+10.8%+21.5%
Q1 2023+2.5%+1.7%-3.0%
Q4 2022+2.9%+6.3%-2.5%
Q3 2022+7.4%+3.2%-7.8%
Q2 2022+12.2%+17.8%+11.9%
Q1 2022-5.1%-3.5%+1.0%
Q4 2021+5.3%+10.7%+18.1%
Q3 2021-3.7%-1.2%-5.6%
Q2 2021-0.4%-1.6%+3.3%
Q1 2021-1.6%-2.2%+6.1%
Q4 2020-2.1%-0.4%-8.4%
Q3 2020+7.4%+8.6%+2.0%
Q2 2020-0.4%+1.0%+2.0%
Q1 2020+6.2%+4.1%-3.4%
Q4 2019+1.9%-1.9%-4.2%
Q3 2019+1.9%+1.0%+5.0%
Q2 2019+0.5%+5.4%+4.6%
Q1 2019-6.6%-6.5%-10.0%
Q4 2018+5.3%+4.1%+7.6%
Q3 2018-2.8%-7.8%-9.5%
Q2 2018+4.5%+0.5%+6.0%
Q1 2018+5.1%+1.1%-2.0%
Q4 2017+6.3%+1.9%-1.0%
Q3 2017+5.1%+4.7%+3.5%
Q2 2017-2.8%-3.7%+19.5%
Q1 2016-0.5%+0.7%-4.4%
Q1 2017+2.3%+7.9%+4.9%
Q4 2014-2.4%-5.9%-2.3%
Q4 2016+0.1%
Q3 2015-1.1%
Q3 2016+0.4%
Q1 2015+0.5%
Q2 2015+0.5%
Q4 2015+0.5%
Q2 2016-0.8%

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