Equity Profile

HLI

Houlihan Lokey, Inc.

FinancialsInvestment Banking & Brokerage$9.2B

Jul28Tue

Pre-Earnings Brief

UpcomingQ1-2027After Close5:00 PM EDT

Company Snapshot

Houlihan Lokey, Inc. (HLI) is a global investment bank that provides financial advisory services, including mergers and acquisitions, capital markets, and financial restructuring....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and helps investors gauge the company's financial health.

N/A

Revenue Growth

Revenue growth is crucial for assessing the company's ability to expand its business and capture market share.

N/A

Wall Street expectations, options signals, track record, and call prep available with Pro.

HLI Q1-2027 Earnings Preview

Context

Company Snapshot

Houlihan Lokey, Inc. (HLI) is a global investment bank that provides financial advisory services, including mergers and acquisitions, capital markets, and financial restructuring. With a market cap of $9 billion, the company plays a significant role in the financial sector, helping clients navigate complex transactions and financial challenges.

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+8.53%

Avg Stock Reaction

+0.06%

Last Quarter Recap

In Q4-2026, Houlihan Lokey reported an EPS of $1.63, which was below the expected $1.84, resulting in a negative surprise of 11.56%. Following the report, the stock declined by 1.96% the next day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Overall, expectations for Houlihan Lokey's upcoming earnings report are uncertain, especially after a disappointing last quarter. Investors will be closely watching for signs of recovery in profitability and revenue.

Bull Case

If Houlihan Lokey can report better-than-expected EPS and demonstrate strong revenue growth, it could signal a rebound in performance, leading to increased investor confidence.

Bear Case

Conversely, if the company misses EPS expectations again or shows weak revenue growth, it could raise concerns about its ability to compete effectively in the investment banking sector.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q1-2027?

EPS is a critical measure of profitability, and a strong performance could help restore investor confidence after the last quarter's miss.

How has revenue growth trended in the current quarter?

Understanding revenue growth is essential for assessing the company's operational performance and market position.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Houlihan Lokey's ability to recover from its last earnings miss, as the company has a strong track record of bouncing back after disappointing results.

Supporting Evidence

The company has a 75% EPS beat rate over the last eight quarters, indicating a tendency to outperform expectations.

Options are pricing a 4.1% move, suggesting that investors anticipate volatility, which could be an overreaction.

The historical average absolute one-day move is only 1.01%, indicating that the market may be pricing in more uncertainty than warranted.

Key Risk

If the EPS comes in above $1.80, it could shift the narrative significantly, leading to a positive reassessment of the company's growth prospects.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around whether Houlihan Lokey can rebound from its last earnings miss and demonstrate solid growth.

Bull Confirmed If

An EPS of $1.80 or higher would confirm the bull case, indicating a strong recovery from the previous quarter.

Bear Confirmed If

An EPS below $1.60 would confirm the bear case, suggesting ongoing challenges in profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±4.1%

Historical Avg

±1.0%

Pricing rich

The options market is pricing in a significant move of about 4.1% following the earnings report, indicating heightened uncertainty among investors.

Options are pricing ±4.1% while HLI has averaged ±1.0% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

26.2%

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter miss + options pricing rich in Financials

n=30

Fade rate: 11 of 30 (37%)

This setup has occurred 30 times across Financials in the last 2 years. 19 of 30 (63%) held or extended their move within 5 days — this setup typically holds direction. The average absolute 1-day move is 2.7%, with a raw directional average of +0.1% (roughly flat historical bias).

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Houlihan Lokey beats expectations, history suggests a potential average one-day move of +0.31%, confirming a positive outlook.

In-Line / Cautious

If results are in line but management's commentary is cautious, the stock may react moderately, reflecting uncertainty.

Miss

If the company misses expectations, history suggests an average one-day move of -0.68%, indicating a negative market reaction.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on revenue growth trends in key advisory segments.
2Management's commentary on market conditions and competitive landscape.
3Insights into client demand and deal flow in the investment banking sector.
4Any changes to guidance for the upcoming quarters.
5Details on cost management strategies and their impact on profitability.

See the full picture

AI-powered briefs, options data, and 20 quarters of history — everything you need before earnings.

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Company Snapshot

Houlihan Lokey, Inc. (HLI) is a global investment bank that provides financial advisory services, including mergers and acquisitions, capital markets, and financial restructuring....

Key Metrics to Watch

Earnings Per Share (EPS)

EPS is a key indicator of profitability and helps investors gauge the company's financial health.

N/A

Revenue Growth

Revenue growth is crucial for assessing the company's ability to expand its business and capture market share.

N/A

Wall Street expectations, options signals, track record, and call prep available with Pro.

HLI Q1-2027 Earnings Preview

Context

Company Snapshot

Earnings Scorecard·Last 8Q

EPS Beat Streak

EPS Beat Rate

75%

Avg EPS Surprise

+8.53%

Avg Stock Reaction

+0.06%

Last Quarter Recap

In Q4-2026, Houlihan Lokey reported an EPS of $1.63, which was below the expected $1.84, resulting in a negative surprise of 11.56%. Following the report, the stock declined by 1.96% the next day.

Management Promises & Guidance

Expectations

Wall Street Expectations

Bull Case

If Houlihan Lokey can report better-than-expected EPS and demonstrate strong revenue growth, it could signal a rebound in performance, leading to increased investor confidence.

Bear Case

Conversely, if the company misses EPS expectations again or shows weak revenue growth, it could raise concerns about its ability to compete effectively in the investment banking sector.

Expectations

Two Questions That Matter

The print will turn on these two things.

What will be the EPS for Q1-2027?

EPS is a critical measure of profitability, and a strong performance could help restore investor confidence after the last quarter's miss.

How has revenue growth trended in the current quarter?

Understanding revenue growth is essential for assessing the company's operational performance and market position.

Edge

What the Street Is Missing

Why consensus could be wrong

The Street may be underestimating Houlihan Lokey's ability to recover from its last earnings miss, as the company has a strong track record of bouncing back after disappointing results.

Supporting Evidence

The company has a 75% EPS beat rate over the last eight quarters, indicating a tendency to outperform expectations.

Options are pricing a 4.1% move, suggesting that investors anticipate volatility, which could be an overreaction.

The historical average absolute one-day move is only 1.01%, indicating that the market may be pricing in more uncertainty than warranted.

Key Risk

If the EPS comes in above $1.80, it could shift the narrative significantly, leading to a positive reassessment of the company's growth prospects.

Edge

Thesis-Break Levels

Pre-commit to what would confirm each case.

The core debate this quarter revolves around whether Houlihan Lokey can rebound from its last earnings miss and demonstrate solid growth.

Bull Confirmed If

An EPS of $1.80 or higher would confirm the bull case, indicating a strong recovery from the previous quarter.

Bear Confirmed If

An EPS below $1.60 would confirm the bear case, suggesting ongoing challenges in profitability.

Pre-Earnings Positioning

Options Market

Implied Move

±4.1%

Historical Avg

±1.0%

Pricing rich

The options market is pricing in a significant move of about 4.1% following the earnings report, indicating heightened uncertainty among investors.

Options are pricing ±4.1% while HLI has averaged ±1.0% over the last 8 prints — setup is pricing rich.

Detail

ATM IV

0.4%

30d HV

26.2%

Edge

Historical Setup Match

Cross-company pattern from 30 similar setups.

Prior-quarter miss + options pricing rich in Financials

n=30

Fade rate: 11 of 30 (37%)

Preparation

Post-Print Playbook

Likely market behavior by outcome — not investment advice.

Beat & Raise

If Houlihan Lokey beats expectations, history suggests a potential average one-day move of +0.31%, confirming a positive outlook.

In-Line / Cautious

If results are in line but management's commentary is cautious, the stock may react moderately, reflecting uncertainty.

Miss

If the company misses expectations, history suggests an average one-day move of -0.68%, indicating a negative market reaction.

Earnings Track Record

Preparation

What to Listen For

Call Prep

1Any updates on revenue growth trends in key advisory segments.
2Management's commentary on market conditions and competitive landscape.
3Insights into client demand and deal flow in the investment banking sector.
4Any changes to guidance for the upcoming quarters.
5Details on cost management strategies and their impact on profitability.