NYSE$HLI

Houlihan Lokey Inc. · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Houlihan Lokey's financial performance for Q2 2024, marked by revenues of $467 million and a diluted EPS of $0.99.

Houlihan Lokey reported Q2 2024 revenues of $467 million, a decrease from $490 million in Q2 2023. Diluted EPS was $0.99, compared to $0.87 in the prior year, while adjusted diluted EPS was $1.11, down from $1.19 in the previous year. The company's Corporate Finance revenues decreased, while Financial Restructuring revenues increased.

  • Revenues for the second quarter of fiscal year 2024 were $467 million.
  • Diluted EPS for the second quarter of fiscal year 2024 was $0.99.
  • Adjusted diluted EPS for the second quarter of fiscal year 2024 was $1.11.
  • A dividend of $0.55 per share was announced for the third quarter of fiscal year 2024.

Headline financials

Total Revenue

$467M

Previous: $490M-4.6%
EPS (adj)

$1.11

Previous: $1.19-6.7%
CF Closed Transactions

117

Previous: 114+2.6%
CF Managing Directors

211

Previous: 210+0.5%
FR Closed Transactions

31

Previous: 24+29.2%
FR Managing Directors

60

Previous: 56+7.1%
FVA Fee Events

852

Previous: 890-4.3%
FVA Managing Directors

40

Previous: 40+0.0%
Capital Expenditures

-$38.9M

Previous: -$17.8M-118.7%
Free Cash Flow

$28.1M

Previous: $42.9M-34.5%
Net Income

$67M

Previous: $60.7M+10.4%
Operating Income

$90.3M

Previous: $89.4M+1.0%
Gross Profit

$143M

Previous: $138M+3.7%
Cash & Equivalents

$494M

Previous: $504M-2.0%
Total Assets

$2.78B

Previous: $2.51B+10.8%

Revenue & EPS history

Houlihan Lokey · Revenue · Quarterly

$467M

Q2 2024-4.6%vs Q2 2023
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Houlihan Lokey · $467M total across 3 segments · Q2 2024

  • Corporate Finance
    $282M-10.6%
  • Financial Restructuring
    $115M+17.4%
  • Financial & Valuation Advisory
    $70.6M-8.1%

Forward guidance

Houlihan Lokey anticipates steady recovery of M&A markets, influenced by debt capital availability and client earnings confidence, but acknowledges potential impact from geopolitical events and remains prepared to manage various economic conditions while investing in strategic growth areas.

Tailwinds

  • Improvements in the availability of debt capital.
  • Confidence in the earnings outlook for clients.
  • Steady recovery of the M&A markets.
  • Well positioned to handle most economic environments.
  • Continued investment in professionals, acquisitions, industries and geographies to create long term shareholder value.

Headwinds

  • Recent geopolitical crises may impact cautious optimism.
  • Revenues decreased primarily as a result of a decrease in the average transaction fee on closed transactions in our Corporate Finance (“CF”) business.
  • CF revenues decreased (11)%.
  • FVA revenues decreased (8)%.
  • The decrease in the number of Fee Events was driven by softness in the M&A markets, which affected one or more of the service lines within our FVA business.

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 2024

Historical avgQ2 2024

+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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