HOULIHAN LOKEY Reports 0.7% Decrease in Revenue for Q1 FY2024
August 21, 2023
🌥️Earnings Overview
On June 30 2023, HOULIHAN LOKEY ($NYSE:HLI) announced their earnings results for the first quarter of FY2024, with total revenue totaling USD 415.8 million, a 0.7% decline year-on-year. Net income for the period amounted to USD 61.4 million, a 13.3% drop compared to the corresponding period of the preceding year.
Analysis
GoodWhale conducted an analysis of HOULIHAN LOKEY‘s wellbeing and the results suggest that the company is doing well. The Star Chart shows that HOULIHAN LOKEY has strong scores in dividend, growth, and profitability, and a medium score in assets. Furthermore, the health score of 9/10 reflects the company’s ability to generate cashflows and pay off its debt while still having enough liquidity to fund future operations. Based on the results of this analysis, HOULIHAN LOKEY is classified as a ‘rhino’, a type of company that has achieved moderate revenue or earnings growth. This makes them an ideal target for investors seeking long-term stability with moderate growth potential. An investor looking for a conservative portfolio would also find this type of company attractive due to its solid track record of performance and lower risk profile. More…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Houlihan Lokey. More…
| Total Revenues | Net Income | Net Margin |
| 1.81k | 244.83 | 13.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Houlihan Lokey. More…
| Operations | Investing | Financing |
| 136.27 | -3 | -240.46 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Houlihan Lokey. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.71k | 1.09k | 23.73 |
Key Ratios Snapshot
Some of the financial key ratios for Houlihan Lokey are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.3% | 14.6% | 18.7% |
| FCF Margin | ROE | ROA |
| 4.7% | 13.1% | 7.8% |
Peers
The company competes with Hatcher Group Ltd, Ontic Finserve Ltd, and Harmony Capital Services Ltd.
– Hatcher Group Ltd ($SEHK:08365)
The Watcher Group Ltd is a publicly traded company with a market capitalization of 306.51 million as of 2022. The company has a negative return on equity of -0.0%. The Watcher Group Ltd is engaged in the business of providing security solutions and services. The company offers a range of services including security consulting, security system design and installation, and security system monitoring and maintenance.
– Ontic Finserve Ltd ($BSE:540386)
Ontic Finserve Ltd is a company that provides financial services. It has a market capitalization of 167.41 million as of 2022 and a return on equity of 2.87%. The company offers services such as banking, lending, and investment management. It has a strong presence in the United Kingdom and the United States.
– Harmony Capital Services Ltd ($BSE:530055)
Harmony Capital Services Ltd is a financial services company that provides capital markets and investment banking services. The company has a market cap of 16.69M as of 2022 and a Return on Equity of -1.9%. The company’s main business activities include providing capital markets and investment banking services to clients in the United Arab Emirates and the Middle East region.
Summary
Houlihan Lokey, an investment bank and financial services company, reported its earnings for the first quarter of FY2024 on June 30th 2023 which displayed a decline from the previous year. Total revenue was reported at USD 415.8 million, a 0.7% decrease, while net income was reported to have decreased by 13.3%, standing at USD 61.4 million. The stock price of Houlihan Lokey moved down on the same day, indicating that investors were not too bullish on the results.
Investors may want to reassess their positions in Houlihan Lokey, looking at the current performance as well as understanding the company’s future objectives. An in-depth analysis may provide insight into whether it is a good time to buy or sell shares in the company.
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