NYSE$HLI

Houlihan Lokey Inc. · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Houlihan Lokey's financial performance declined slightly in Q4 2023 due to decreased revenues across most segments, but the company maintained solid profitability.

Houlihan Lokey reported a decrease in revenues for both the fiscal year and fourth quarter ended March 31, 2023. FY23 revenues were $1.81 billion, a 20% decrease from the previous year. Q4 2023 revenues were $445 million, a 6% decrease compared to Q4 2022. Diluted EPS for Q4 2023 was $1.10, while adjusted diluted EPS was $1.11. The company announced an increase in the quarterly dividend to $0.55 per share.

  • Q4 2023 revenues decreased by 6% to $445 million compared to Q4 2022.
  • Q4 2023 diluted EPS was $1.10, and adjusted diluted EPS was $1.11.
  • Corporate Finance, Financial Restructuring, and Financial and Valuation Advisory revenues all experienced slight decreases in Q4 2023.
  • The company's board of directors declared a quarterly cash dividend of $0.55 per share.

Headline financials

Total Revenue

$445M

Previous: $471M-5.6%
EPS (adj)

$1.11

Previous: $1.30-14.6%
CF Closed Transactions

140

Previous: 144-2.8%
CF Managing Directors

217

Previous: 202+7.4%
FR Closed Transactions

38

Previous: 25+52.0%
FR Managing Directors

57

Previous: 53+7.5%
FVA Fee Events

957

Previous: 999-4.2%
FVA Managing Directors

39

Previous: 34+14.7%
Capital Expenditures

$19.1M

Previous: $1.13M+1594.9%
Free Cash Flow

$219M

Previous: $63.3M+245.8%
Net Income

$74.7M

Previous: $65.2M+14.6%
Operating Income

$90.6M

Previous: $98.6M-8.1%
Gross Profit

$162M

Previous: $178M-8.9%
Cash & Equivalents

$714M

Previous: $834M-14.3%
Total Assets

$2.97B

Previous: $2.89B+2.8%

Revenue & EPS history

Houlihan Lokey · Revenue · Quarterly

$445M

Q4 2023-5.6%vs Q4 2022
Beat estimate in 11 of 14 quarters(79%)
ActualEstimate

Revenue by segment

Houlihan Lokey · $445M total across 3 segments · Q4 2023

  • Corporate Finance
    $256M-8.1%
  • Financial Restructuring
    $120M-1.0%
  • Financial & Valuation Advisory
    $68M-3.7%

Forward guidance

Houlihan Lokey believes that its diversified business model will continue to produce solid profitability under the current market environment.

Tailwinds

  • Corporate Finance business seeing strong new business activity.
  • Corporate Finance business showing some consistency in quarterly results.
  • Financial Restructuring business had a solid fourth quarter.
  • Financial Restructuring poised to deliver strong results in fiscal 2024.
  • Financial and Valuation Advisory business modestly grew in fiscal 2023.

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 Q4 2023

Historical avgQ4 2023

+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%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro