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Houlihan Lokey, Inc. HLI is scheduled to release fiscal third-quarter 2025 results on Jan. 28, 2025, after market close. The Zacks Consensus Estimate for the to-be-reported quarter’s earnings is currently pegged at $1.51 per share on revenues of $592.2 billion.
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The third-quarter fiscal 2025 earnings estimate witnessed downward revisions in the past 30 days. The Zacks Consensus Estimate for Houlihan Lokey’s third-quarter fiscal 2025 earnings per share (EPS) indicates 23.8% growth from the prior-year quarter’s reported figure. The Zacks Consensus Estimate for quarterly revenues suggests year-over-year growth of 15.9%.
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For fiscal 2025, the Zacks Consensus Estimate for Houlihan Lokey’s revenues is pegged at $2.3 billion, implying a rise of 19% year over year. The consensus mark for fiscal 2025 EPS is pegged at $5.74, implying growth of 27.8% year over year.
Houlihan Lokey’s bottom line beat estimates in three of the trailing four quarters and met the mark once, the average surprise being 6.6%. This is depicted in the chart below:
Houlihan Lokey, Inc. Price and EPS Surprise
Houlihan Lokey, Inc. price-eps-surprise | Houlihan Lokey, Inc. Quote
Q3 Earnings Whispers for HLI
Our proven model does not conclusively predict an earnings beat for Houlihan Lokey this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here, as you see below.
Earnings ESP: Houlihan Lokey has an Earnings ESP of -3.97% because the Most Accurate Estimate of $1.45 is pegged lower than the Zacks Consensus Estimate of $1.51. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.
Zacks Rank: HLI currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors at Play
In the fiscal third quarter, Houlihan Lokey's top line is likely to have benefited from improved fee revenues derived from offering enhanced advisory services on transactions contingent on individually negotiated engagement letters.
A strong contribution from the Financial Restructuring segment is likely to have driven Houlihan Lokey's overall revenues. The unit is expected to have gained from opportunities in large-cap and middle markets. A high-leverage environment bodes well for this segment. This, in turn, is likely to have led to an uptick in the number of closed transactions in the to-be-reported quarter.