Hamilton Lane (NASDAQ:HLNE) Releases Quarterly Earnings Results, Beats Estimates By $0.33 EPS

Hamilton Lane (NASDAQ:HLNE) announced its quarterly earnings results on Tuesday. The company reported $1.98 earnings per share for the quarter, beating the consensus estimate of $1.65 by $0.33, Zacks reports. Hamilton Lane had a net margin of 32.14% and a return on equity of 25.10%. The firm had revenue of $204.43 million for the quarter, compared to analysts’ expectations of $215.23 million. During the same quarter in the previous year, the company posted $1.54 EPS. The company’s revenue was up 7.1% compared to the same quarter last year.

Here are the key takeaways from Hamilton Lane’s conference call:

• Positive Sentiment: Total asset footprint reached approximately $1.1 trillion, up 7% year over year, while AUM rose 4% to $151 billion and AUA increased 8% to $929 billion. Year-to-date fee-related revenue grew 29% and fee-related earnings increased 34%.
• Positive Sentiment: Fee-earning AUM grew 12% year over year to $86 billion, led by specialized funds, whose fee-earning AUM rose 25% to more than $44 billion. The Evergreen Platform reached nearly $21 billion, with quarterly net inflows accelerating to approximately $800 million.
• Positive Sentiment: Fundraising momentum remains strong, including a $1.3 billion first close for the seventh secondary fund, a more than $370 million first close for the latest Venture fund, and new strategies in GP-led secondaries, credit, impact, and other specialized areas. Management fees have begun accruing on several of these commitments, with potential retroactive fees from subsequent closes.
• Positive Sentiment: Hamilton Lane announced a multi-year partnership with FactSet to integrate its private-markets data, benchmarks, and analytics into FactSet’s public-private portfolio platform. Management said the agreement includes a meaningful annual recurring revenue floor with additional upside as the partnership scales.
• Negative Sentiment: Management cautioned that the unusually strong 52% year-to-date FRE margin, supported by fee-related performance revenues, should not be expected consistently each quarter. The company continues to target low-50s annual FRE margins, while exit activity and fundraising conditions remain highly uneven across managers and portfolios.

Hamilton Lane Trading Up 0.9%

Shares of HLNE stock opened at $88.63 on Wednesday. Hamilton Lane has a 1-year low of $71.88 and a 1-year high of $155.66. The firm has a market cap of $4.92 billion, a PE ratio of 13.51 and a beta of 1.16. The company has a 50-day moving average of $90.30 and a two-hundred day moving average of $97.50. The company has a debt-to-equity ratio of 0.16, a current ratio of 3.49 and a quick ratio of 3.49.

Hamilton Lane Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, January 7th. Shareholders of record on Monday, December 21st will be paid a dividend of $0.60 per share. This represents a $2.40 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend is Monday, December 21st. Hamilton Lane’s dividend payout ratio (DPR) is 36.59%.

More Hamilton Lane News

Here are the key news stories impacting Hamilton Lane this week:

• Positive Sentiment: Hamilton Lane earned $1.98 per share, above the roughly $1.65 analyst consensus and up from $1.54 a year earlier. Fee-related earnings rose 34%, and the fee margin reached 51%, pointing to strength in the company’s core fee business. Hamilton Lane Q2 earnings top estimates
• Positive Sentiment: The company declared a quarterly dividend of $0.60 per share, equivalent to $2.40 annually and a reported yield of about 2.7%. Hamilton Lane dividend target and partnership
• Positive Sentiment: Hamilton Lane and FactSet announced a strategic partnership to integrate private-markets analytics into FactSet’s portfolio workflow, potentially expanding the reach and use of Hamilton Lane’s data and analytics. FactSet and Hamilton Lane partnership
• Negative Sentiment: Quarterly revenue of $204.43 million missed analyst expectations of $215.23 million, despite increasing 7.1% year over year. The revenue miss tempers the otherwise strong per-share earnings result. Hamilton Lane sales below estimates

Analyst Upgrades and Downgrades

A number of equities analysts have commented on HLNE shares. UBS Group reduced their target price on shares of Hamilton Lane from $131.00 to $115.00 and set a “buy” rating on the stock in a research note on Tuesday, October 13th. BMO Capital Markets dropped their price target on shares of Hamilton Lane from $116.00 to $95.00 and set an “outperform” rating for the company in a research note on Tuesday, October 27th. Keefe, Bruyette & Woods raised their price target on shares of Hamilton Lane from $116.00 to $120.00 and gave the stock an “outperform” rating in a report on Wednesday. Morgan Stanley set a $118.00 price target on shares of Hamilton Lane in a research report on Friday, October 16th. Finally, The Goldman Sachs Group reaffirmed a “buy” rating and set a $117.00 price target on shares of Hamilton Lane in a research report on Friday, October 2nd. Seven equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat, Hamilton Lane currently has an average rating of “Moderate Buy” and an average price target of $124.62.

Hamilton Lane Company Profile

Hamilton Lane Incorporated (NASDAQ: HLNE) is a global investment management firm specializing in private markets. The company provides investment solutions and advisory services focused on alternative assets, including private equity, private credit, venture capital, growth equity, infrastructure and real assets.

Hamilton Lane serves institutional investors, family offices, financial advisors and high-net-worth individuals. Its offerings include separately managed accounts, customized portfolios, commingled funds, evergreen vehicles and secondary-market strategies.