The Houlihan Lokey, Inc. (NYSE:HLI) Full-Year Results Are Out And Analysts Have Published New Forecasts

Investors in Houlihan Lokey, Inc. (NYSE:HLI) had a good week, as its shares rose 3.9% to close at US$181 following the release of its yearly results. Results were roughly in line with estimates, with revenues of US$2.4b and statutory earnings per share of US$5.82. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Houlihan Lokey after the latest results.

Following the latest results, Houlihan Lokey's eight analysts are now forecasting revenues of US$2.62b in 2026. This would be a solid 9.8% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 14% to US$6.52. In the lead-up to this report, the analysts had been modelling revenues of US$2.62b and earnings per share (EPS) of US$7.11 in 2026. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

View our latest analysis for Houlihan Lokey

It might be a surprise to learn that the consensus price target was broadly unchanged at US$176, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Houlihan Lokey analyst has a price target of US$207 per share, while the most pessimistic values it at US$151. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Houlihan Lokey shareholders.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We can infer from the latest estimates that forecasts expect a continuation of Houlihan Lokey'shistorical trends, as the 9.8% annualised revenue growth to the end of 2026 is roughly in line with the 9.8% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 5.6% per year. So it's pretty clear that Houlihan Lokey is forecast to grow substantially faster than its industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. The consensus price target held steady at US$176, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on Houlihan Lokey. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Houlihan Lokey going out to 2028, and you can see them free on our platform here..

We also provide an overview of the Houlihan Lokey Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.