Houlihan Lokey, a Los Angeles-based investment bank, has reported third-quarter earnings that exceeded analysts’ expectations, leading to a rise in stock prices.
Positive Trading Figures
The stock price of Houlihan Lokey experienced a 4% increase, reaching $126.15 on Friday. Furthermore, it reached a 52-week high of $129.22. Over the past 12 months, the company’s shares have risen by approximately 25.7%.
Impressive Earnings Performance
In the quarter ending on December 31, Houlihan Lokey recorded earnings of $70.8 million or $1.04 per share. This represents a significant improvement compared to the same quarter last year, where the company earned $63.1 million or 90 cents per share.
Exceeding Expectations
Adjusted earnings per share came in at $1.22, surpassing the estimate of $1.15 provided by analysts polled by FactSet.
Revenue Growth
Houlihan Lokey also achieved impressive revenue growth for the quarter, generating $511.1 million. This is notably higher than the $456.5 million reported in the previous year and exceeded analysts’ expectations of $493 million.
CEO’s Positive Outlook
Chief Executive Scott Beiser expressed confidence in Houlihan Lokey’s long-term value creation for shareholders, particularly as the M&A markets continue to improve.
In conclusion, Houlihan Lokey’s solid performance in the third quarter has resulted in a rise in stock prices. These positive figures were driven by strong earnings growth and revenue expansion, establishing the company as well-positioned for the future.