Houlihan Lokey Inc (HLI) Reports Q2 Fiscal 2024 Earnings
Houlihan Lokey Inc (NYSE:HLI) reported Q2 Fiscal 2024 revenues of $467 million, a decrease from $490 million in Q2 Fiscal 2023.
Q2 Fiscal 2024 Diluted EPS stood at $0.99, an increase from $0.87 in the same quarter of the previous fiscal year.
Adjusted Q2 Fiscal 2024 Diluted EPS was $1.11, down from $1.19 in Q2 Fiscal 2023.
The company announced a dividend of $0.55 per share for Q3 Fiscal 2024.
On October 27, 2023, Houlihan Lokey Inc (NYSE:HLI) released its financial results for the second quarter ended September 30, 2023. The company reported revenues of $467 million, a decrease from $490 million in the same quarter of the previous fiscal year. Net income was $67 million, or $0.99 per diluted share, compared to $61 million, or $0.87 per diluted share, in Q2 Fiscal 2023. Adjusted net income for Q2 Fiscal 2024 was $77 million, or $1.11 per diluted share, compared to $83 million, or $1.19 per diluted share, in Q2 Fiscal 2023.
Financial Performance
According to Scott Beiser, CEO of Houlihan Lokey, the company finished the second fiscal quarter with better results than the prior quarter. He stated,
We continue to see improvements in the availability of debt capital and confidence in the earnings outlook for our clients, all of which bodes well for a steady recovery of the M&A markets. However, the recent geopolitical crises may impact our cautious optimism. Regardless, we believe we are well positioned to handle most economic environments, and we will continue to invest in professionals, acquisitions, industries and geographies where we believe we can create long term shareholder value."
Segment Reporting
Corporate Finance revenues were $282 million for Q2 Fiscal 2024, a decrease of 11% compared to Q2 Fiscal 2023. Financial Restructuring revenues increased by 17% to $115 million, while Financial and Valuation Advisory revenues decreased by 8% to $71 million.
Balance Sheet and Capital Allocation
As of September 30, 2023, the company had $525 million of cash and cash equivalents and investment securities, and $31 million of other liabilities. The Board of Directors declared a regular quarterly cash dividend of $0.55 per share of Class A and Class B common stock, payable on December 15, 2023.
Looking Ahead
Despite the challenges posed by the recent geopolitical crises, Houlihan Lokey Inc (NYSE:HLI) remains optimistic about its position to handle most economic environments. The company plans to continue investing in professionals, acquisitions, industries, and geographies where it believes it can create long-term shareholder value.
Explore the complete 8-K earnings release (here) from Houlihan Lokey Inc for further details.
This article first appeared on GuruFocus.
