What to Expect from Houlihan Lokey's Earnings
Benzinga Insights 9 months ago
Earnings
Houlihan Lokey (NYSE:HLI) is gearing up to announce its quarterly earnings on Wednesday, 2026-01-28. Here's a quick overview of what investors should know before the release.
Analysts are estimating that Houlihan Lokey will report an earnings per share (EPS) of $1.85.
The market awaits Houlihan Lokey's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.
It's important for new investors to understand that guidance can be a significant driver of stock prices.
Earnings Track Record
Last quarter the company beat EPS by $0.15, which was followed by a 10.14% drop in the share price the next day.
Here's a look at Houlihan Lokey's past performance and the resulting price change:
| Quarter | Q2 2026 | Q1 2026 | Q4 2025 | Q3 2025 |
|---|---|---|---|---|
| EPS Estimate | 1.69 | 1.68 | 1.62 | 1.51 |
| EPS Actual | 1.84 | 2.14 | 1.96 | 1.64 |
| Price Change % | -10.00 | 0.00 | 7.00 | -2.00 |
Houlihan Lokey Share Price Analysis
Shares of Houlihan Lokey were trading at $182.7 as of January 26. Over the last 52-week period, shares are down 0.23%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analysts' Take on Houlihan Lokey
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Houlihan Lokey.
Analysts have given Houlihan Lokey a total of 4 ratings, with the consensus rating being Outperform. The average one-year price target is $213.5, indicating a potential 16.86% upside.
Comparing Ratings with Competitors
The below comparison of the analyst ratings and average 1-year price targets of XP, Moelis and Lazard, three prominent players in the industry, gives insights for their relative performance expectations and market positioning.
- Analysts currently favor an Buy trajectory for XP, with an average 1-year price target of $23.5, suggesting a potential 87.14% downside.
- Analysts currently favor an Neutral trajectory for Moelis, with an average 1-year price target of $78.67, suggesting a potential 56.94% downside.
- Analysts currently favor an Outperform trajectory for Lazard, with an average 1-year price target of $58.6, suggesting a potential 67.93% downside.
Peers Comparative Analysis Summary
The peer analysis summary provides a snapshot of key metrics for XP, Moelis and Lazard, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Houlihan Lokey | Outperform | 14.70% | $253.89M | 5.05% |
| XP | Buy | 7.73% | $566.94M | 5.75% |
| Moelis | Neutral | 30.37% | $101.48M | 10.16% |
| Lazard | Outperform | -3.70% | $264.89M | 8.80% |
Key Takeaway:
Houlihan Lokey ranks first in gross profit and return on equity among its peers. It ranks second in revenue growth. However, it ranks last in consensus rating.
Get to Know Houlihan Lokey Better
Houlihan Lokey Inc is an investment bank with expertise in mergers and acquisitions, capital markets, financial restructuring, valuation, and strategic consulting. The firm serves corporations, institutions, and governments world-wide with offices in the United States, Europe, and the Asia-Pacific region. The company operates in three segments. In the Corporate Finance business segment, it provides M&A and capital markets advisory services. Through the Financial Restructuring business segment, the company advises on some of the complex restructurings around the world. The Financial and Valuation Advisory Services business segment provides valuation and financial opinion, and financial and strategic consulting practices in the United States.
Houlihan Lokey: A Financial Overview
Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.
Revenue Growth: Houlihan Lokey's remarkable performance in 3 months is evident. As of 30 September, 2025, the company achieved an impressive revenue growth rate of 14.7%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Financials sector.
Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 16.95%, the company showcases strong profitability and effective cost control.
Return on Equity (ROE): Houlihan Lokey's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 5.05%, the company may face hurdles in achieving optimal financial performance.
Return on Assets (ROA): Houlihan Lokey's ROA stands out, surpassing industry averages. With an impressive ROA of 3.06%, the company demonstrates effective utilization of assets and strong financial performance.
Debt Management: With a below-average debt-to-equity ratio of 0.19, Houlihan Lokey adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Houlihan Lokey visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.