Houlihan Lokey Q2 results beat estimates on higher transaction fees
Overview
U.S. investment bank's fiscal Q2 revenue rose yr/yr, beating analyst expectations
Adjusted EPS for fiscal Q2 beat analyst expectations
Company cites improving market conditions for stronger quarter
Outlook
Company expects solid performance across businesses for the remainder of the year
Company remains cautious due to volatility of external factors
Result Drivers
HIGHER FEES - Co said increased average transaction fees and improved market conditions for M&A and capital markets drove Corporate Finance revenue growth
FEWER RESTRUCTURING DEALS - Co said Financial Restructuring revenue fell due to fewer closed transactions, mainly from timing of transaction closings
NON-CYCLICAL GROWTH - Co said Financial and Valuation Advisory revenue rose due to growth in non-cyclical businesses
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $692 mln | $620.68 mln (8 Analysts) |
Q2 Adjusted EPS | Beat | $1.85 | $1.66 (11 Analysts) |
Q2 EPS | $1.64 | ||
Q2 Adjusted Net Income | Beat | $124 mln | $108.51 mln (7 Analysts) |
Q2 Net Income | $110 mln | ||
Q2 Operating Income | $154 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the investment banking & brokerage services peer group is "buy"
Wall Street's median 12-month price target for Houlihan Lokey, Inc. is $153.50, about 16% above its October 27 closing price of $132.35
The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 16 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)