Houlihan Lokey, Inc. (NYSE:HLI) Plans Quarterly Dividend of $0.70

Key Points

• Houlihan Lokey declared a quarterly dividend of $0.70 per share, payable June 15 to shareholders of record on June 1, a 16.7% increase from the prior quarterly payout and implying about a 1.9% yield.
• The dividend is well covered and durable: the firm has raised its payout every year for nine years and carries a payout ratio around 29.8%, with analysts projecting future earnings that would keep the payout ratio near 27.5%.
• Recent results were mixed—Q1 EPS of $1.63 missed estimates ($1.79) and revenue declined 4.6% YoY to $635.6M—while the stock trades near $150 with a ~23x P/E and roughly $10.5B market cap.

Houlihan Lokey, Inc. (NYSE:HLI - Get Free Report) announced a quarterly dividend on Wednesday, May 6th. Investors of record on Monday, June 1st will be paid a dividend of 0.70 per share by the financial services provider on Monday, June 15th. This represents a c) dividend on an annualized basis and a yield of 1.9%. The ex-dividend date of this dividend is Monday, June 1st. This is a 16.7% increase from Houlihan Lokey's previous quarterly dividend of $0.60.

Houlihan Lokey has increased its dividend by an average of 0.1%per year over the last three years and has raised its dividend every year for the last 9 years. Houlihan Lokey has a payout ratio of 29.8% meaning its dividend is sufficiently covered by earnings. Equities research analysts expect Houlihan Lokey to earn $8.73 per share next year, which means the company should continue to be able to cover its $2.40 annual dividend with an expected future payout ratio of 27.5%.

Houlihan Lokey Price Performance

HLI stock opened at $150.33 on Thursday. The firm has a 50 day simple moving average of $150.81 and a two-hundred day simple moving average of $169.11. The stock has a market cap of $10.49 billion, a PE ratio of 22.87, a P/E/G ratio of 1.07 and a beta of 0.99. Houlihan Lokey has a one year low of $134.41 and a one year high of $211.78.

Houlihan Lokey (NYSE:HLI - Get Free Report) last announced its earnings results on Wednesday, May 6th. The financial services provider reported $1.63 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.79 by ($0.16). The company had revenue of $635.64 million during the quarter, compared to analysts' expectations of $679.22 million. Houlihan Lokey had a return on equity of 24.46% and a net margin of 16.91%.The firm's revenue was down 4.6% on a year-over-year basis. During the same quarter last year, the firm posted $1.96 earnings per share. On average, research analysts expect that Houlihan Lokey will post 7.73 EPS for the current fiscal year.

Houlihan Lokey Company Profile

Houlihan Lokey, Inc is a global investment bank and financial services firm founded in 1972 and headquartered in Los Angeles, California. The company specializes in advisory services across a broad range of transaction types and financial matters. Since its founding, Houlihan Lokey has grown to serve corporations, financial sponsors, and government entities worldwide, providing expertise in complex and high-stakes engagements.

The firm's core service offerings include mergers and acquisitions advisory, capital markets advisory, financial restructuring and distressed M&A, and valuation and fairness opinions.

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