Investment banking firm Houlihan Lokey (NYSE: HLI) will be reporting earnings this Wednesday after the bell. Here’s what you need to know.
Houlihan Lokey beat analysts’ revenue expectations last quarter, reporting revenues of $717.1 million, up 13% year on year. It was a strong quarter for the company, with and a decent beat of analysts’ revenue estimates.
Is Houlihan Lokey a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Houlihan Lokey’s revenue to grow 1.9% year on year, slowing from the 28% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Houlihan Lokey has a history of exceeding Wall Street’s expectations.
Looking at Houlihan Lokey’s peers in the investment banking & brokerage segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Evercore delivered year-on-year revenue growth of 100%, beating analysts’ expectations by 16.6%, and Piper Sandler reported revenues up 22.5%, topping estimates by 8.2%. Evercore traded down 5.6% following the results while Piper Sandler was also down 10.9%.
Read our full analysis of Evercore’s results here and Piper Sandler’s results here.
There has been positive sentiment among investors in the investment banking & brokerage segment, with share prices up 8.1% on average over the last month. Houlihan Lokey is up 6.9% during the same time and is heading into earnings with an average analyst price target of $174.50 (compared to the current share price of $150.53).
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