Yahoo Finance Houlihan Lokey Inc (HLI) Fiscal Year 2024 Earnings: A Comprehensive Analysis
Fiscal Year Revenue: Reached $1.91 billion, up from $1.81 billion the previous year, exceeding the estimate of $1.905 billion.
Fiscal Year Diluted EPS: Reported at $4.11, below the estimated $4.45, with adjusted EPS at $4.49.
Fourth Quarter Revenue: Totaled $520 million, an increase from $445 million in the prior year's quarter, surpassing the estimated $508.99 million.
Fourth Quarter Diluted EPS: Recorded at $1.18, below the estimated $1.23, with adjusted EPS at $1.27.
Annual Net Income: Stood at $280 million, below the estimated $307.09 million, with adjusted net income at $310 million.
Quarterly Net Income: Was $81 million, below the estimated $83.52 million, with adjusted net income at $88 million.
Dividend: Announced an increase in the quarterly dividend to $0.57 per share.
Houlihan Lokey Inc (NYSE:HLI), a global investment bank specializing in mergers, acquisitions, capital markets, financial restructuring, and valuation advisory services, released its 8-K filing on May 9, 2024, detailing financial results for the fiscal year and fourth quarter ended March 31, 2024.
The company reported a fiscal year 2024 revenue of $1.91 billion, marking a 6% increase from the previous year's $1.81 billion. This performance slightly surpasses the estimated revenue of $1.905 billion. Diluted earnings per share (EPS) for the year stood at $4.11, slightly missing the estimated $4.45, while adjusted EPS was $4.49. The fourth quarter saw revenues of $520 million, exceeding the estimated $508.99 million, with a diluted EPS of $1.18 and an adjusted EPS of $1.27, aligning closely with the estimated $1.23.
Segment Performance and Financial Highlights
The Corporate Finance segment experienced a slight decline in annual revenue, while the Financial Restructuring segment grew by 32%, and the Financial and Valuation Advisory segment remained stable. The fourth quarter reflected significant growth across all segments, contributing to the highest fourth-quarter revenue in the company's history.
Employee compensation and benefits for the fiscal year were $1.213 billion, maintaining a compensation ratio of 63.4%. Non-compensation expenses rose to $337.95 million due to increased professional fees and rent expenses. The provision for income taxes was $110.24 million, reflecting an effective tax rate of 28.2%, up from the previous year's 21.5%.
Challenges and Market Conditions
Despite the robust revenue growth, the company acknowledged the challenging market conditions, particularly in the M&A sector. CEO Scott Beiser emphasized the firm's diversified business model and stability through market cycles but noted realism about the pace of recovery in the current sluggish M&A environment.
Dividend Increase and Future Outlook
Reflecting confidence in the financial stability and future prospects, Houlihan Lokey announced an increase in the quarterly dividend to $0.57 per share. This decision underscores the firm's commitment to delivering shareholder value amidst varying market conditions.
Conclusion
Houlihan Lokey's fiscal year 2024 results demonstrate a resilient performance with record fourth-quarter revenues and a strategic response to ongoing market challenges. The alignment of most financial outcomes with analyst expectations, coupled with a proactive approach to shareholder returns, positions the firm well for the upcoming fiscal year.
For detailed financial figures and further information, refer to the full 8-K filing by Houlihan Lokey Inc.
Explore the complete 8-K earnings release (here) from Houlihan Lokey Inc for further details.
This article first appeared on GuruFocus.
